MRV Communications (MRVC) 10-K 9 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 08, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MRV COMMUNICATIONS INC
Entity Central Index Key	887,969
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding (shares)		6,801,961
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 50,622,475

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Product revenue	$ 68,349	$ 77,553	$ 76,828
Service revenue	11,966	10,646	9,710
Total revenue	80,315	88,199	86,538
Cost of Revenue:
Cost of product	36,335	38,496	39,705
Cost of services	4,874	4,123	4,232
Total cost of revenue	41,209	42,619	43,937
Gross profit	39,106	45,580	42,601
Operating expenses:
Product development and engineering	20,481	20,448	20,833
Selling, general and administrative	29,674	28,966	35,080
Total operating expenses	50,155	49,414	55,913
Operating loss	(11,049)	(3,834)	(13,312)
Interest expense	0	(55)	(24)
Other income (loss), net	(266)	(48)	671
Loss from continuing operations before provision for income taxes	(11,315)	(3,937)	(12,665)
Provision for income taxes	322	2,871	1,873
Loss from continuing operations	(11,637)	(6,808)	(14,538)
Income (loss) from discontinued operations, net of income taxes of $1,311 and $2,430 in 2015 and 2014, respectively	0	(371)	2,383
Net loss	$ (11,637)	$ (7,179)	$ (12,155)
Net income (loss) per share — basic and diluted
From continuing operations (usd per share)	$ (1.69)	$ (0.97)	$ (1.98)
From discontinued operations (usd per share)	0	(0.05)	0.32
Net loss per share — basic and diluted (usd per share)	$ (1.69)	$ (1.02)	$ (1.66)
Weighted average number of shares:
Basic and diluted (shares)	6,886	7,019	7,344

Consolidated Statements of Ope3

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Income tax netted from Income from Discontinued Operations	$ 1,311	$ 2,430

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,637)	$ (7,179)	$ (12,155)
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)	84	(886)	(3,265)
Foreign currency translation loss realized upon divestiture of subsidiary	0	2,180	0
Other comprehensive income (loss):	84	1,294	(3,265)
Total comprehensive loss	$ (11,553)	$ (5,885)	$ (15,420)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 25,116	$ 26,169
Restricted time deposits	272	5,190
Accounts receivable, net	14,295	14,837
Inventories	9,657	10,226
Other current assets	2,378	6,851
Total current assets	51,718	63,273
Property and equipment, net	3,130	4,050
Intangible assets, net	1,064	1,153
Other assets	348	608
Total assets	56,260	69,084
Current liabilities:
Deferred consideration payable	233	233
Accounts payable	8,353	5,749
Accrued liabilities	9,195	9,972
Deferred revenue	6,146	7,642
Other current liabilities	156	196
Total current liabilities	24,083	23,792
Long-term liabilities	3,478	3,846
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred Stock, $0.01 par value: Authorized — 1,000 shares; no shares issued or outstanding	0	0
Common Stock, $0.0017 par value: Authorized---16,000 shares; Issued---8,425 shares in 2016 and 8,341 shares in 2015; Outstanding — 6,802 shares in 2016 and 6,982 shares in 2015	270	270
Additional paid-in capital	1,287,336	1,285,787
Accumulated deficit	(1,239,308)	(1,227,671)
Treasury stock — 1,623 shares in 2016 and 1,359 shares in 2015	(18,098)	(15,355)
Accumulated other comprehensive loss	(1,501)	(1,585)
Total stockholders' equity	28,699	41,446
Total liabilities and stockholders' equity	$ 56,260	$ 69,084

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 0.0017	$ 0.0017
Common stock, shares authorized	16,000,000	16,000,000
Common stock, shares issued	8,425,000	8,341,000
Common stock outstanding (shares)	6,802,000	6,982,000
Preferred stock par value (usd per share)	$ 0.01	$ 0.01
Preferred stock authorized (shares)	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	1,623,000	1,359,000

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Total stockholders' equity, beginning balance at Dec. 31, 2013	$ 63,790	$ 270	$ 1,281,883	$ (1,208,337)	$ (10,412)	$ 386
Total stockholders' equity, beginning balance (shares) at Dec. 31, 2013		7,286
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and warrants	1,641		1,641
Exercise of stock options and warrants (shares)		100
Share-based compensation	959		959
Net loss	(12,155)			(12,155)
Other comprehensive (loss)	(3,265)					(3,265)
Total stockholders' equity, ending balance at Dec. 31, 2014	50,970	$ 270	1,284,483	(1,220,492)	(10,412)	(2,879)
Total stockholders' equity, ending balance (shares) at Dec. 31, 2014		7,386
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury shares	(4,943)				(4,943)
Purchase of treasury shares (shares)		(502)
Exercise of stock options and warrants	140		140
Exercise of stock options and warrants (shares)		98
Share-based compensation	1,164		1,164
Net loss	(7,179)			(7,179)
Other comprehensive (loss)	1,294					1,294
Total stockholders' equity, ending balance at Dec. 31, 2015	$ 41,446	$ 270	1,285,787	(1,227,671)	(15,355)	(1,585)
Total stockholders' equity, ending balance (shares) at Dec. 31, 2015	6,982	6,982
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury shares	$ (2,743)				(2,743)
Purchase of treasury shares (shares)		(264)
Exercise of stock options and warrants	45		45
Exercise of stock options and warrants (shares)		84
Share-based compensation	1,504		1,504
Net loss	(11,637)			(11,637)
Other comprehensive (loss)	84					84
Total stockholders' equity, ending balance at Dec. 31, 2016	$ 28,699	$ 270	$ 1,287,336	$ (1,239,308)	$ (18,098)	$ (1,501)
Total stockholders' equity, ending balance (shares) at Dec. 31, 2016	6,802	6,802

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Cash flows from operating activities:
Net loss	$ (11,637)	$ (7,179)	$ (12,155)
(Income) loss from discontinued operations, net of taxes	0	371	(2,383)
Loss from continuing operations	(11,637)	(6,808)	(14,538)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,845	2,062	2,051
Share-based compensation expense	1,504	1,119	932
Provision for doubtful accounts	(5)	40	42
Deferred income taxes	0	2,669	1,804
Loss (gain) on disposition of property and equipment	110	(1)	11
Gain on sale of Tecnonet	0	(189)	0
Changes in operating assets and liabilities:
Accounts and other receivables	548	2,649	186
Inventories	754	127	2,878
Other assets	(651)	2,002	(221)
Accounts payable	2,602	(1,420)	(1,035)
Accrued liabilities	(275)	(761)	(1,672)
Income tax payable	53	(39)	38
Deferred revenue	(1,819)	(745)	1,662
Other current and long term liabilities	(239)	(540)	(80)
Cash provided by (used in) operating activities - continuing operations	(7,210)	165	(7,942)
Cash provided by operating activities - discontinued operations	0	8,438	3,806
Net cash provided by (used in) operating activities	(7,210)	8,603	(4,136)
Cash flows from investing activities:
Purchases of property and equipment	(786)	(1,375)	(1,314)
Purchases of intangible assets	(163)	0	(650)
Decrease (increase) in restricted time deposits	4,919	(4,955)	13
Proceeds from sale of property and equipment	2	9	0
Proceeds from sale of Tecnonet, net of cash divested and transaction costs in 2015	4,789	8,688	0
Cash provided by (used in) investing activities - continuing operations	8,761	2,367	(1,951)
Cash used in investing activities - discontinued operations	0	(81)	(177)
Net cash provided by (used in) investing activities	8,761	2,286	(2,128)
Cash flows from financing activities:
Proceeds from exercise of stock options	145	190	72
Payments for shares repurchased for tax withholdings on vesting of restricted stock awards	(100)	(50)	(87)
Purchase of treasury shares	(2,743)	(4,943)	0
Cash used in financing activities - continuing operations	(2,698)	(4,803)	(15)
Cash provided by (used in) financing activities - discontinued operations	0	(1,649)	1,795
Net cash provided by (used in) financing activities	(2,698)	(6,452)	1,780
Effect of exchange rate changes on cash and cash equivalents	94	(690)	(685)
Net increase (decrease) in cash and cash equivalents	(1,053)	3,747	(5,169)
Cash and cash equivalents, beginning of year	26,169	22,422	27,591
Cash and cash equivalents, end of year	25,116	26,169	22,422
Less cash and equivalents of discontinued operations, end of year	0	0	6,280
Cash and cash equivalents, end of year	25,116	26,169	16,142
Supplemental disclosure of cash flow information:
Cash paid during year for interest	0	125	283
Cash paid during year for income taxes	$ 155	$ 1,825	$ 1,791

Description of Business and Bas

Description of Business and Basis of Presentation	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Description of Business MRV Communications, Inc. and subsidiaries ("MRV" or the "Company"), a Delaware corporation, is a global supplier of communications solutions to telecommunications service providers, data center operators, enterprises and governments throughout the world. MRV markets and sells its products worldwide, through a variety of channels, which include a dedicated direct sales force, distributors, value-added-resellers, systems integrators and sales agents. Until the third quarter of 2015, MRV conducted its business along two principal segments: the Network Equipment segment and the Network Integration segment. MRV's Network Equipment segment designs, manufactures, sells and services equipment used by commercial customers, governments, and telecommunications service providers. Products include packet switching, optical transport, infrastructure management equipment and service orchestration and provisioning software. The Network Integration segment, which primarily operated in Italy and provided network system design, integration and distribution services that included products manufactured by third-party vendors, was sold in December 2015. On December 3, 2015, the Company completed the sale of all of its shares of its wholly owned subsidiary, Tecnonet S.p.A.("Tecnonet"), pursuant to a shares purchase agreement, dated as of August 10, 2015 (the "Purchase Agreement") with Maticmind S.p.A, a company incorporated under the laws of Italy. Tecnonet was the last business unit in our Network Integration segment. On February 19, 2016, the Company received a payment of €4.3 million (approximately $4.8 million ) representing the post-closing purchase price adjustment pursuant to the Purchase Agreement. Our business involves reliance on foreign-based offices. Several of our divisions, outside subcontractors and suppliers are located in foreign countries, including Argentina, Australia, Canada, Denmark, Germany, Israel, Italy, Netherlands, Philippines, Poland, Russia, Taiwan, Thailand, and the United Kingdom. For the years ended December 31, 2016 , 2015 and 2014 , external revenues from foreign subsidiaries accounted for 22% , 24% and 26% , respectively, of our total revenue. The majority of our foreign sales are to customers located in the European and Asia Pacific region. Basis of Presentation MRV's fiscal year is based on the calendar year ending on December 31. The accompanying consolidated financial statements include the accounts of MRV and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. MRV consolidates the financial results of less than majority-owned subsidiaries when it has effective control, voting control, or has provided the entity's working capital. When investment by others in these enterprises reduces the Company's voting control below 50% , MRV discontinues consolidation and uses the cost or equity method of accounting for these investments, unless otherwise required.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Revenue Recognition MRV's revenue-generating products consist of switches and routers, console management, physical layer products, and fiber optic components. We recognize product revenue, net of sales discounts, returns and allowances, when persuasive evidence of an arrangement exists, delivery has occurred and all significant contractual obligations have been satisfied, the fee is fixed or determinable and collection is considered reasonably assured. Products are generally shipped "FOB shipping point," with no right of return and revenue is recognized upon shipment. If revenue is to be recognized upon delivery, such delivery date is tracked through information provided by the third party shipping company we use to deliver the product to the customer. Sales of services and system support are deferred and recognized ratably over the contract period. Sales to end customers with contingencies, such as rights of return, rotation rights, conditional acceptance provisions and price protection, are infrequent and insignificant and are deferred until the contingencies have been satisfied or the contingent period has lapsed. For sales to distributors, we generally recognize revenue when product is sold to the distributor rather than when the product is sold by the distributor to the end user. In certain circumstances, distributors have limited rights of return such as stock rotation rights. We estimate and establish allowances for expected future product returns and credits. We record a reduction in revenue for estimated future product returns and future credits to be issued to the customer in the period in which revenue is recognized, and for future credits to be issued in relation to price protection at the time we make changes to our distributor price book. We monitor product returns and potential price adjustments on an ongoing basis and estimate future returns and credits based on historical sales returns, analysis of credit memo data, and other factors known at the time of revenue recognition. MRV collects sales taxes from its customers to remit to the applicable taxing authorities. These amounts are not included in revenues, but are included on the balance sheet in accrued liabilities. Amounts billed to customers in a sale transaction related to shipping and handling represent revenues earned for goods provided and are classified as revenue. Shipping and handling costs are classified as cost of sales. MRV generally warrants its products against defects in materials and workmanship for 90 days to three -year periods. The estimated cost of warranty obligations and sales returns and other allowances are recognized at the time of revenue recognition based on contract terms and prior claims experience. Accounting for Multiple-Element Arrangements. We allocate arrangement consideration at the inception of the arrangement to all deliverables using the relative selling price method. The selling price we use for each deliverable is based on (a) vendor-specific objective evidence if available; (b) third-party evidence if vendor-specific objective evidence is not available; or (c) best estimate of selling price if neither vendor-specific objective evidence nor third-party evidence is available. We allocate discounts in the arrangement proportionally on the basis of the selling price of each deliverable. Cash and Cash Equivalents MRV treats highly liquid investments with an original maturity of 90 days or less as cash equivalents. Investments with original maturities at the date of purchase greater than 90 days and remaining time to maturity of one year or less as short-term and are included in restricted time deposits. MRV maintains cash balances and investments in qualified financial institutions, and at various times such amounts are in excess of federal insured limits. As of December 31, 2016 and 2015 , the Company's U.S. entities held $19.2 million and $21.6 million in cash and cash equivalents. The remaining $5.9 million and $4.6 million , respectively, were held by the company's foreign subsidiaries in foreign bank deposit accounts. Restricted Time Deposits Restricted time deposits represent investments that are restricted as to withdrawal or use and from time to time may include certificates of deposit. The investments in and releases of restricted time deposits are included in investing activities on the Company's Consolidated Statements of Cash Flows because the funds are invested in certificates of deposit. As of December 31, 2016 and 2015, the Company held $0.3 million and $5.2 million of restricted time deposits, respectively; $5.0 million of which represented a certificate of deposit with a highly rated financial institution that matured in December 2016. The $0.3 million and remaining $0.2 million of restricted time deposits held as of December 31, 2016 and 2015, respectively, represent security deposits that are restricted due to their respective agreements. Concentration of Credit Risk, Accounts Receivable and Allowance for Doubtful Accounts Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents placed with high credit quality institutions and accounts receivable due from customers. Management evaluates the collectability of accounts receivable based on a combination of factors. If management becomes aware of a customer's inability to meet its financial obligations after a sale has occurred, the Company records an allowance to reduce the net receivable to the amount that management reasonably believes to be collectable from the customer. If the financial conditions of MRV's customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. Accounts receivable are charged off at the point they are considered uncollectible. The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Year ended: Balance at beginning of period Charged to expense Deductions Effect of foreign currency exchange rates Balance at end of period December 31, 2014 $ 1,117 42 (91 ) (6 ) $ 1,062 December 31, 2015 $ 1,062 40 (38 ) (4 ) $ 1,060 December 31, 2016 $ 1,060 (5 ) (795 ) 7 $ 267 As of December 31, 2016 and 2015 , two customers, accounted for 22% and 20% of gross accounts receivables, respectively. Inventories Inventories are stated at the lower of cost or market and consist of materials, labor and overhead. Cost is computed using global standard cost, which approximates actual cost, on a first-in, first-out basis. Intercompany sales are recorded using standard costs for book purposes, and are eliminated in consolidation. If management estimates that the net realizable value of inventory is less than the cost of the inventory recorded, an adjustment to the cost basis equal to the difference between the cost of the inventory and the estimated net realizable market value is recorded. This adjustment is recorded as a charge to cost of goods sold, and includes estimates for excess quantities and obsolete inventory. If changes in market conditions result in reductions in the estimated net realizable value of our inventory below previous estimates, we would make further adjustments in the period in which we make such a determination and record a charge to cost of goods sold. At each balance sheet date, management evaluates the ending inventories for excess quantities or obsolescence. This evaluation includes analysis of sales levels and projections of future demand. Based on this evaluation, management writes down the inventory to net realizable value if necessary. At the time of recording the adjustment, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration of, or increase in, that newly established cost basis. Inventories, net of reserves, consisted of the following (in thousands): December 31: 2016 2015 Raw materials $ 2,485 $ 3,132 Work-in process 347 839 Finished goods 6,825 6,255 Total inventories $ 9,657 $ 10,226 Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred and the costs of additions and betterments that increase the useful lives of the assets are capitalized. When property or equipment are disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is included in other income, net, in the accompanying Consolidated Statements of Operations. Depreciation is computed using the straight line method over the estimated useful lives of the related assets, as follows: Life (years) Asset category From To Machinery and equipment 2 5 Computer hardware and software 3 7 Leasehold improvements 1 10 Furniture and fixtures 3 15 Intangible Assets Intangible assets that are determined to have definite lives are amortized over their useful lives. The Company recorded an impairment charge of $0.1 million during the year ended December 31, 2014 . The Company did no t record any impairment charges for the years ended December 31, 2016 and 2015 . (See Note 4, Property and Equipment and Intangible Assets) Impairment of Long-Lived Assets Management evaluates its long-lived assets, such as property and equipment and other long-term assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may be impaired. Management takes into consideration events or changes such as product discontinuance, plant closures, product dispositions and history of operating losses or other changes in circumstances to indicate that the carrying amount may not be recoverable. The carrying value of an asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the estimated fair value. Fair value is determined using the anticipated cash flows discounted at a rate based on our weighted average cost of capital, which represents the blended after-tax costs of debt and equity. There was no impairment loss on long-lived assets during the three years ended December 31, 2016 . Fair Value of Financial Instruments MRV's financial instruments including cash and cash equivalents, restricted time deposits, accounts receivable, other receivables included in other assets and accounts payable are carried at cost, which approximates their fair value. The fair values of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The Company follows a framework for measuring fair value using a three-level hierarchy that prioritizes the use of observable inputs. The fair value hierarchy is divided into three levels based on the source of inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs for similar instruments; Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. All of MRV's financial assets and a majority of its financial liabilities that are measured at fair value are measured using the unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Under this framework, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Management has not elected the fair value option for non-financial assets and liabilities. As of December 31, 2015 , the Company had cash equivalents consisting of money market funds of $1.8 million that were classified as Level 1 investments and were held at market price. No such instruments were held as of December 31, 2016 . Cash equivalents are included in the Consolidated Balance Sheets as follows (in thousands): Cost Fair Value December 31, 2015 $ 1,807 $ 1,807 During 2014, the Company issued 250,000 Common Stock warrants that prior to issuance were recorded as a liability at fair value. These Common Stock warrants were awarded to a plaintiffs' counsel in connection with a previously settled litigation matter. Upon issuance, the carrying value of the Common Stock warrants was reclassified to equity as a component of additional paid in capital in the amount of $1.6 million . In calculating the fair value of the Common Stock warrants, management used the Black Scholes option pricing model including a volatility of 41% based on the Company's historical quoted prices and peer company data, the risk free interest rate of 1.5% and a 5 year expected term of the Common Stock warrants. Volatility was based on both the Company's historical quoted prices and peer company data as the Company's stock is thinly traded. The resulting calculated fair value was $6.59 per warrant. As of the issuance date of Common Stock warrants, the requirements necessary for equity classification were met and were recorded as a component of additional paid in capital. During the year ended December 31, 2014 , one of plaintiffs' counsel exercised 152,500 Common Stock warrants under the 'cashless' exercise provisions contained within the warrant agreement, leaving 97,500 Common Stock warrants with an exercise price of $8.80 per warrant still available for future exercise. No Common Stock warrants were exercised during the years ended December 31, 2016 and 2015 . The Common Stock warrants expire on July 18, 2018. Other Current Assets Other current assets include other accounts receivable, prepaid expenses and other assets that will be consumed or collected within a twelve month period. Other current assets as of December 31, 2016 , included pre-paid expenses of $1.1 million and $1.3 million of other receivables. Other current assets as of December 31, 2015 included other accounts receivable of $4.8 million related to the post-closing purchase price adjustment on the sale of Tecnonet, prepaid expenses of $1.2 million and $0.9 of other assets. Liability for Severance Pay Under the laws of certain foreign jurisdictions, MRV is obligated to make severance payments to employees in those foreign jurisdictions on the basis of factors such as each employee's current salary and length of employment. The liability for severance pay is calculated as the amount that the Company would be required to pay if every employee were to separate as of the end of the period, and is recorded as part of other long-term liabilities. Cost of Sales Cost of sales includes material, depreciation on fixed assets used in the manufacturing process, shipping costs, direct labor and overhead. Product Development and Engineering Product development and engineering costs are charged to expense as incurred. Software Development Costs Development costs related to software products for sale or to be included in our products are expensed as incurred until the technological feasibility of the product has been established. Technological feasibility occurs when a working model is completed. After technological feasibility is established, additional costs are capitalized. We believe that our process for internally developed software is essentially completed concurrent with the establishment of technological feasibility, and, accordingly, no software development costs for internally developed software have been capitalized to date. Internal Use Software Development Costs Any software that we acquire, internally develop, or modify solely to meet our internal needs, and for which we have no substantive plan to market the software externally, is capitalized during the development phase. Costs incurred during the research phase are expensed as incurred. There were no such costs capitalized during the years ended December 31, 2016 , 2015 and 2014 . Sales and Marketing Sales and marketing costs are charged to expense as incurred. For the years ended December 31, 2016 , 2015 and 2014 , advertising and trade show costs were $0.6 million , $0.4 million and $0.9 million , respectively. Income Taxes We account for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We use a risk based approach and analysis to identify potential tax exposures, estimate those tax exposures, and record appropriate uncertain tax liabilities based on whether or not the tax position is more-likely-than-not to be sustained under examination. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations if the sustainability of the uncertain tax position does not meet the "more likely than not" recognition threshold based on its technical merits. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of shares of common stock ("Common Stock") outstanding, including restricted shares which, although they are legally outstanding and have voting rights, are subject to vesting and are treated as Common Stock equivalents in calculating basic net income (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding and dilutive potential shares of Common Stock from stock options and warrants outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each period using the treasury stock method. Employee equity share options, non-vested shares and similar equity instruments granted by MRV, are treated as potential shares of Common Stock outstanding in computing diluted net income per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service not yet recognized, and the amount of income tax benefits that would be realized and recorded in additional paid-in capital if the deduction for the award would reduce income taxes payable are assumed to be used to repurchase shares. Outstanding stock options to purchase 455,498 , 295,366 and 309,309 shares were excluded from the computation of dilutive shares for the years ended December 31, 2016 , 2015 and 2014 , respectively, as they were anti-dilutive because of the net loss from continuing operations. The outstanding 97,500 warrants were excluded from the computation of dilutive shares for the years ended December 31, 2016 , 2015 and 2014 as they were anti-dilutive because of the net loss from continuing operations. Treasury shares are excluded from the number of shares outstanding. Share-Based Compensation The Company accounts for stock-based payment awards at fair value at the grant date. The estimated fair value of stock options and warrants are determined using the Black-Scholes valuation model. The assumptions used in calculating the fair value of share-based payment awards represent MRV's best estimates. Those estimates may be impacted by certain variables including stock price volatility, employee stock option exercise behaviors, additional stock option grants, estimates of forfeitures, and the related income tax impact. Stock-based compensation cost is recorded as expense using the straight-line method over the requisite service period. Recently Issued Accounting Standards Not Yet Adopted We consider the applicability and impact of all Accounting Standards Updates (“ASUs”) not yet adopted. The ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations. In May 2014, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09") and in August 2015 issued ASU No. 2015-14, which amended the effective date of the standard to annual reporting periods beginning after December 15, 2017. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. During 2016, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”). The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). Management is continuing to assess the potential impact that adopting the new revenue standards will have on its consolidated financial statements and footnote disclosures. The Company’s current analysis indicates that the most significant effect of the new standard relates to the Company's accounting for certain fulfillment and contract acquisition costs, which will now be capitalized, rather than expensed as incurred, which is the Company's current practice under the current guidance. In addition, the Company expects to continue recognizing product sales at a point in time and service revenue over time. While the Company continues its assessment of the potential effects of the new standard, management anticipates adopting the new standard on a modified retrospective basis effective January 1, 2018. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory" (“ASU 2015-11”). ASU 2015-11 simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using the last-in, first out (LIFO), or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value, and defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 will become effective for the Company for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management has determined that the adoption of ASU 2015-11 on January 1, 2017, will not have a significant impact on its consolidated financial statements and footnote disclosures. In November 2015, the FASB issued ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"). The amendments in ASU 2015-17 simplify the presentation of deferred income taxes by requiring that deferred tax assets and liabilities be classified as non-current. ASU 2015-17 will become effective for the Company for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management has determined that the adoption of ASU 2015-17 on January 1, 2017, will not have a significant impact on its consolidated financial statements and footnote disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"). The amendments in ASU 2016-02 require companies that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations generated by contracts longer than a year. ASU 2016-02 will become effective for the Company for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The guidance is required to be applied using the modified retrospective transition approach. Early adoption is permitted. Management is currently evaluating the potential impact that adopting ASU 2016-02 will have on its condensed consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Stock Compensation (Topic 718): Improvements to employee Share-Based Payment Accounting" ("ASU 2016-09"). The amendments in ASU 2016-09 simplify the accounting for share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 will become effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management has determined that the adoption of ASU 2016-09 on January 1, 2017, will not have a significant impact on its consolidated financial statements and footnote disclosures. Use of Estimates The preparation of these consolidated financial statements require management to make certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. On an ongoing basis, management evaluates its significant estimates and assumptions, including those related to revenue recognition, stock-based compensation, inventory valuation, accrued warranty, allowance for doubtful accounts, and accounting for income taxes. Management bases its estimates on historical and anticipated results, trends and on various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ materially from those estimates. In 2016, the Company accounted for a change in estimate related to the useful lives of its service inventory resulting in a $0.2 million charge to cost of services and increasing net loss $0.2 million for the year ended December 31, 2016. The change in accounting estimate also affected the Company's basic and diluted net loss per share $0.03 for the year ended December 31, 2016.

Discontinued Operations

Discontinued Operations	12 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations On August 10, 2015, we announced that we entered into a shares purchase agreement (“the Purchase Agreement”) with Maticmind S.p.A., (the “Purchaser”), a company incorporated under the laws of Italy, for the sale of all of the shares of our wholly-owned subsidiary Tecnonet. The consideration for the transaction included a cash payment by the Purchaser to the Company of €15.6 million (approximately $17.0 million ) at closing plus a cash payment by Tecnonet to the Company of €4.1 million (approximately $4.6 million ) prior to closing to repay an outstanding intercompany obligation. Tecnonet procured third party debt financing and repaid the loan in full in two payments: €1.5 million was received during the quarter ended September 30, 2015, with the remaining amount received during October 2015. The Purchaser assumed this debt at closing pursuant to the Purchase Agreement. On December 1, 2015, the sale of Tecnonet was approved by the Company's stockholders at the Company's special meeting of stockholders. On December 3, 2015, the Company completed the sale of all of the shares of Tecnonet. On February 19, 2016, the Company received a payment of €4.3 million (approximately $4.8 million ) representing the post-closing purchase price adjustment pursuant to the Purchase Agreement. The Purchase Agreement also contains customary representations, warranties, covenants and indemnification obligations. The Company included the $4.8 million receivable representing the post-closing purchase price adjustment on its consolidated balance sheet within other current assets as of December 31, 2015 . In 2015 , the Company reported an after-tax gain on the sale of Tecnonet in the amount of $0.2 million . In addition, the Company recorded a cumulative translation loss $2.2 million and $0.8 million in transaction costs related to the sale, all of which are recorded within discontinued operations in 2015 . The $2.2 million of foreign currency related losses included $1.0 million of historical translation related adjustments previously included in accumulated other comprehensive income on the consolidated balance sheet and $1.2 million recognized loss on the intercompany obligation that was settled as part of the transaction. The results of operations of Tecnonet for the years ended December 31, 2015 and 2014 that are reflected in consolidated statements of operations as discontinued operations consist of the following (in thousands): Year Ended December 31: 2015 2014 Revenue: Product revenue $ 32,315 $ 47,649 Service revenue 30,274 37,869 Total revenue 62,589 85,518 Cost of Revenue: Cost of product 28,472 42,883 Cost of services 24,181 29,458 Total cost of revenue 52,653 72,341 Gross profit 9,936 13,177 Selling, general and administrative (1) 6,574 7,615 Operating income 3,362 5,562 Interest expense (124 ) (305 ) Cumulative translation loss recognized upon sale of Tecnonet (2,180 ) — Other expense, net (307 ) (444 ) Income from discontinued operations before income taxes 751 4,813 Provision for income taxes 1,311 2,430 Income (loss) from discontinued operations, net of tax (560 ) 2,383 Gain on sale of Tecnonet, net of tax 189 — Net income (loss) from discontinued operations, net of income taxes $ (371 ) $ 2,383 (1) Includes Transaction costs of $0.8 million in 2015. The assets and liabilities of Tecnonet were removed from our consolidated balance sheet as of the date of the divestiture.

Property and Equipment and Inta

Property and Equipment and Intangible Assets	12 Months Ended
	Dec. 31, 2016
Assets [Abstract]
Property and Equipment and Intangible Assets	Property and Equipment and Intangible Assets Property and Equipment Property and equipment, at cost, consisted of the following (in thousands): December 31: 2016 2015 Machinery and equipment $ 9,026 $ 8,557 Computer hardware and software 6,080 6,512 Leasehold improvements 2,041 2,406 Furniture and fixtures 382 438 Construction in progress 53 119 Total property and equipment, at cost 17,582 18,032 Less — accumulated depreciation and amortization (14,452 ) (13,982 ) Total property and equipment $ 3,130 $ 4,050 Depreciation expense for the years ended December 31, 2016 , 2015 and 2014 was $1.6 million , $1.9 million and $1.9 million , respectively. Intangible Assets Intangible assets, net of amortization, consist of intellectual property such as license agreements and totaled $1.1 million and $1.2 million as of December 31, 2016 and 2015 , respectively. The terms of the some of these license agreements provide for use of the licensed software into perpetuity while others are definite. The Company amortizes the cost of the license agreements over the estimated useful life, which can range between three to five years. A portion of these assets, approximating $0.4 million and $0.7 million , were placed into service during the years ended December 31, 2016 and 2015 , respectively. The following table illustrates the estimated future amortization expense of intangible assets as of December 31, 2016 (in thousands): Year ending December 31, Estimated Amortization Expense 2017 $ 305 2018 247 2019 247 2020 149 2021 110 Thereafter 6 Total $ 1,064 Amortization of intangible assets was $0.3 million , $0.2 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014 respectively. The Company recorded an impairment charge of $0.1 million during the year ended December 31, 2014 on one of the software license agreements placed into service. The Company did not record any impairment charges related to intangible assets for the years ended December 31, 2016 and 2015. As of December 31, 2016, intangible assets not yet placed into service totaled approximately $0.2 million .

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31: 2016 2015 Payroll and related $ 5,552 $ 6,514 Professional fees 1,185 1,284 Non-income taxes 489 483 Product warranty 587 593 Severance and other employee related costs 643 — Other 739 1,098 Total accrued liabilities $ 9,195 $ 9,972

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For financial reporting purposes, loss from continuing operations before provision for income taxes includes the following (in thousands): Year ended December 31: 2016 2015 2014 United States $ (8,499 ) $ (3,308 ) $ (7,993 ) Foreign (2,816 ) (629 ) (4,672 ) Loss from continuing operations before provision for income taxes $ (11,315 ) $ (3,937 ) $ (12,665 ) The provision (benefit) for income taxes consists of the following (in thousands): Year ended December 31: 2016 2015 2014 Current: State $ 4 $ 49 $ (89 ) Foreign 318 144 68 Total current 322 193 (21 ) Deferred: Foreign — 2,678 1,894 Total deferred — 2,678 1,894 Provision for income taxes $ 322 $ 2,871 $ 1,873 The income tax provision differs from the amount computed by applying the federal statutory income tax rate as follows: Year ended December 31: 2016 2015 2014 Income tax provision, at statutory federal rate 34 % 34 % 34 % State and local income taxes, net of federal income taxes effect 3 4 3 Permanent differences (1 ) (4 ) (1 ) Foreign taxes at rates different than domestic rates (2 ) (1 ) (3 ) Expired capital loss carryforwards — (880 ) — Change in tax rates (12 ) — — Change in valuation allowance (23 ) 775 (47 ) Other adjustments (2 ) (1 ) (1 ) Effective tax rate (3 )% (73 )% (15 )% The components of deferred income taxes consist of the following (in thousands): December 31: 2016 2015 Deferred tax assets: Net operating losses $ 92,176 $ 91,893 Allowance for doubtful accounts 118 365 Inventory reserve 2,413 3,161 Accrued liabilities 2,397 2,794 Other 4,162 4,697 Total deferred tax assets 101,266 102,910 Valuation allowance (100,810 ) (102,747 ) Net deferred tax assets 456 163 Deferred tax liabilities: Depreciation and amortization (456 ) (163 ) Total deferred tax liabilities (456 ) (163 ) Total deferred income taxes $ — $ — MRV records valuation allowances against deferred income tax assets, when necessary. Realization of deferred income tax assets, such as net operating loss ("NOL") carryforwards and income tax credits, is dependent on future taxable earnings and is therefore uncertain. At least quarterly, the Company assesses the likelihood that the deferred income tax asset balance will be recovered from future taxable income. To the extent management believes that recovery is unlikely, the Company establishes a valuation allowance against the deferred income tax asset, which increases income tax expense in the period such determination is made. During the year ended December 31, 2016 , the Company recorded a net decrease to the valuation allowance totaling $2.0 million against deferred income tax assets primarily as a result of domestic and foreign net operating losses and changes in temporary differences. The change in the valuation allowance is as follows (in millions): December 31: 2016 2015 2014 Balance at beginning of period $ (103 ) $ (139 ) $ (133 ) (Increase) decrease in valuation allowance 2 36 (6 ) Balance at end of period $ (101 ) $ (103 ) $ (139 ) As of December 31, 2016 , MRV had federal, state, and foreign NOL carryforwards available of $183.3 million , $112.0 million and $100.8 million , respectively. For the year ended December 31, 2016 , federal NOL carryforwards increased by $0.8 million , state net operating loss carryforwards increased by $14.9 million , and foreign NOL carryforwards increased by $3.4 million . For federal and state income tax purposes, the NOLs are available to offset future taxable income, begin expiring in 2017 and are available through 2036. Certain foreign NOL carryforwards and tax credits are available indefinitely. Under the Internal Revenue Code, if a corporation undergoes an "ownership change," the corporation's ability to use its pre-change NOLs, capital loss carryforwards and other pre-change tax attributes to offset its post-change income may be limited. An ownership change is generally defined as a greater than 50% change in its equity ownership by value over a three-year period. We may experience an ownership change in the future as a result of subsequent shifts in our stock ownership. If we were to trigger an ownership change in the future, our ability to use any NOLs and capital loss carryforwards existing at that time could be limited. As of December 31, 2016, the federal, state and foreign NOLs had a full valuation allowance. MRV has not recorded U.S. income tax expense for foreign earnings that it has declared as indefinitely reinvested offshore, thus reducing its overall income tax expense. At December 31, 2016 , MRV had approximately $4.2 million of accumulated but undistributed earnings at certain foreign entities. The amount of earnings designated as indefinitely reinvested offshore is based upon our expectations of the future cash needs of the Company's foreign and domestic entities. Income tax considerations are also a factor in determining the amount of foreign earnings to be repatriated. In the event actual cash needs of the Company's U.S. entities exceed current expectations or the actual cash needs of the Company's foreign entities are less than expected, the Company may need to repatriate foreign earnings that have been designated as indefinitely reinvested offshore. This would result in recording additional U.S. income tax expense. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. During the year ended December 31, 2016, the Company reported a loss of $11.3 million from continuing operations before provision for income taxes. The Company recognized income tax expense of $1.3 million and $2.4 million for the years ended December 31, 2015 and 2014, respectively, with respect to its discontinued operations. The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): December 31: 2016 2015 2014 Balance at beginning of period $ (81 ) $ (100 ) $ (134 ) Reductions related to prior year positions 43 19 34 Balance at end of period $ (38 ) $ (81 ) $ (100 ) Substantially all of the uncertain tax benefits as of December 31, 2016 , if recognized, would affect the effective tax rate. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The tax years 2002-2016 remain open to examination by the major taxing jurisdictions to which the Company is subject. Management does not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.

Long-term liabilities

Long-term liabilities	12 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Long-term liabilities	Long-term liabilities Long-term liabilities consisted of the following (in thousands): December 31: 2016 2015 Liability for social contribution (1) $ 2,643 $ 2,729 Long-term portion of deferred revenue 797 1,036 Other 38 81 Total Long-term liabilities $ 3,478 $ 3,846 (1) Represents statutory post-employment benefits related to Israeli operations.

401(k) Plan

401(k) Plan	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
401(k) Plan	401(k) Plan The Company sponsors a 401(k) plan to provide retirement benefits for its U.S. employees. As allowed under Section 401(k) of the Internal Revenue Code, MRV's plan provides for tax-deferred salary contributions for eligible employees. The Plan allows employees to contribute a portion of their annual compensation to the plan on a pretax basis. The Company currently matches pretax contributions up to 50% of the first 6% of eligible earnings contributed by employees. Matching contributions to the Plan totaled approximately $521,000 , $424,000 , and $562,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Commitments MRV leases certain facilities and equipment under non-cancelable lease agreements expiring in various years through 2020. Following are the aggregate minimum annual lease payments under leases in effect as of December 31, 2016 (in thousands): Year ending December 31: Operating leases 2017 $ 984 2018 607 2019 400 2020 251 Total $ 2,242 Rental expense under non-cancelable operating lease agreements for the years ended December 31, 2016 , 2015 and 2014 , was $1.2 million , $1.0 million and $1.3 million , respectively. On June 30, 2005, the Company entered into a lease amendment as successor-in-interest to Luminent, Inc. for the lease of office and warehouse space located in Chatsworth, CA (Los Angeles area). In February 2017, the Company extended its current lease through March 31, 2019, with no option to extend the lease term. The remaining lease payments will approximate $0.6 million . (See Note 16, Subsequent Events ) On October 8, 1996, the Company entered into a lease amendment for the lease of office space located in Chatsworth, CA (Los Angeles area). The current term of the lease is for 10 years through April 1, 2017, with no option to extend the lease term. Pursuant to the amendment, the Company was granted an improvement allowance of $70,000 which is being amortized as a reduction to rent expense over the life of the lease. In August 2016, the Company vacated this facility in an effort to consolidate its two existing Chatsworth facilities. The remaining lease obligation of $33 thousand is recorded in accrued liabilities on the Consolidated Balance Sheets as of December 31, 2016. In January 2017, the Company accelerated the termination date of this lease amendment to January 31, 2017. (See Note 16, Subsequent Events ) On December 16, 2009, the Company entered into a lease amendment with Chelmsford Associates, LLC for the lease of office space located in Chelmsford, MA (Boston area). In April 2015, the Company extended the terms of its existing lease for five years, six months through August 31, 2020, with an option to extend the lease term for a five year period. The remaining lease payments over the current term will approximate $1.2 million . Pursuant to the lease, the Company was granted rent abatement of $214,067 , which is being amortized as a reduction to rent expense over the life of the lease. On August 9 2007, the Company entered into a lease with Mirobin Ltd. for the lease of office space located in Yokneam, Israel (Haifa area) through December 31, 2017, with no option to extend the lease term. The remaining lease payments over the current term will approximate $0.4 million . Purchase Commitments with Outsourcing Partners and Component Suppliers We utilize several outsourcing partners to manufacture sub-assemblies for the Company’s products and to perform final assembly and testing of finished products. These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days. The Company also obtains individual components for its products from a wide variety of individual suppliers. Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information. As of December 31, 2016 , the Company had outstanding minimum future commitments for manufacturing and component purchases totaled $14.2 million . The Company records a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of its future demand forecasts. As of December 31, 2016 and December 31, 2015 , the liability for these purchase commitments was $0.4 million and $0.2 million , respectively, and is included in accounts payable on the consolidated balance sheets. Royalty Commitment Certain of MRV's Israeli subsidiaries are obligated to the Office of the Chief Scientist of the Government of Israel ("Chief Scientist") with respect to the government's participation in research and development expenses for certain products. The royalty to the Chief Scientist is recorded in cost of goods sold, and is calculated at a rate of 2.0% to 5.0% of sales of such products developed with the participation, up to the cost of such participation. We have reserved approximately $243,000 against a disputed claim that was raised in 2005, though the last correspondence with the Chief Scientist on the matter occurred in 2008. Amounts received from the participation of the Chief Scientist are offset against the related research and development expenses incurred. MRV did not receive participation from the Chief Scientist for the years ended December 31, 2016 , 2015 , and 2014 . Indemnification Obligations In connection with the sale by MRV of SPI in October 2010, MRV agreed to indemnify the buyer against certain claims brought after the closing for prior-occurring events. Most of the indemnification obligations have expired; however, indemnifications related to employee benefits, environmental liabilities and taxes extend until their applicable statute of limitations has run plus 90 days , and indemnification obligations are not time limited for title and ownership representations. These indemnification obligations are subject to a $1.0 million deductible and a $20.0 million cap and we have purchased an insurance policy to protect against such obligations. The Company has received a notice from SPI, advising the Company of a tax audit for periods including tax returns filed prior to the acquisition of SPI by the buyer. MRV believes that it has meritorious defenses to the extent a formal indemnification claim is asserted and has notified its insurer of the potential claim. MRV intends to vigorously contest any claim; however, no formal legal proceeding has been commenced, and MRV can provide no assurance that such claim would not have a material adverse effect on its business, operating results or financial condition. Our agreements for the sale of certain business (CES in March 2012, Alcadon and Interdata in October 2012, and Tecnonet in December 2015) include customary indemnification obligations to the respective buyers. In connection with the sale of CES, MRV agreed to indemnify the buyer for the representations and warranties made in the sale purchase agreement and purchased an insurance policy to protect against any claims of indemnification related to the representations and warranties. In addition, the Company has indemnification obligations to its current and former officers and directors as set forth in the Company's bylaws. We have agreements whereby our officers and directors are indemnified for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we retain directors and officers insurance that reduces our exposure and enables us to recover portions of amounts paid. As a result of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal. Accordingly, no liabilities have been recorded for these indemnification agreements as of December 31, 2016 and 2015 . In the normal course of business to facilitate sales of its products, MRV indemnifies other parties, including customers, lessors and parties to other transactions with us, with respect to certain matters. The Company has agreed to hold the other parties harmless against losses arising from a breach of representation or covenants, for intellectual property infringement, or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. We cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these obligations. Over the last decade, the Company has not incurred any significant expense as a result of obligations of this type. Accordingly, the Company has not accrued any amounts for such indemnification obligations. However, there can be no assurances that expenses will not be incurred under these indemnification provisions in the future. Litigation We are subject to legal claims and litigation in the ordinary course of business, including but not limited to product liability, employment and intellectual property claims. The outcome of any such matters is currently not determinable. In addition, we were party to the litigation set forth below. Nhan T. Vo, individually and on behalf of other aggrieved employees vs. MRV Communications, Inc., Superior Court of California, County of Los Angeles. On June 27, 2013, the plaintiff in this matter filed a lawsuit against the Company alleging claims for failure to properly pay overtime or provide meal and rest breaks to its non-exempt employees in California, among other things. The complaint seeks an unspecified amount of damages and penalties under provisions of the Labor Code, including the Labor Code Private Attorneys General Act. The Company has filed an answer denying all allegations regarding the plaintiff’s claims and asserting various defenses. Management believes it has accrued adequate reserves for this matter and does not expect the matter to have a material adverse effect on its business or financial condition. However, depending on the actual outcome of this case, further provisions could be recorded in the future which may have a material adverse effect on the Company’s operating results. In connection with the sale by MRV of SPI in October 2010, MRV agreed to indemnify the buyer against certain claims brought after the closing for prior-occurring events. The Company has received a notice from SPI, advising the Company of a tax audit for periods including tax returns filed prior to the acquisition of SPI by the buyer. Management believes that it has meritorious defenses to the extent a formal indemnification claim is asserted and has notified its insurer of the potential claim. MRV intends to vigorously contest any claim; however, no formal legal proceeding has been commenced, and MRV can provide no assurance that such claim would not have a material adverse effect on its business, operating results or financial condition. From time to time, MRV receives notices from third parties alleging possible infringement of patents with respect to product features or manufacturing processes. Management believes such notices are common in the communications industry because of the large number of patents that have been filed on these subjects. The Company's policy is to discuss these notices with the parties in an effort to demonstrate that MRV's products and/or processes do not violate any patents. Management does not believe that any of these matters will result in a material adverse outcome. MRV and its subsidiaries have from time to time been named as a defendant in other lawsuits involving matters that management considers routine to the nature of its business. Management is of the opinion that the ultimate resolution of such outstanding matters will not have a material adverse effect on our business, operating results and financial condition. Cost Saving Measures and Asset Impairments During the second half of fiscal 2016, the Company initiated cost saving measures intended to optimize its cost structure. These cost saving measures included consolidating facilities in Chatsworth, California which amounted to approximately $0.2 million , in addition to reductions in workforce which included one-time termination benefits of approximately $1.6 million . The costs of implementation were reported under cost of net revenues and operating expenses in the Consolidated Statements of Operations. Substantially all cash outlays in connection with these measures occurred in the third and fourth quarter of fiscal 2016. As of December 31, 2016, activities related to these measures were substantially complete. The changes in reserves associated with these measures for fiscal 2016 consisted of the following and are included in accrued liabilities on the accompanying Consolidated Balance Sheets (in thousands): Severance and Other employee related costs Facility Closures and Asset impairments Balance at January 1, 2016 $ — $ — Provision for cost saving measures 1,557 166 Cash payments made (914 ) (63 ) Balance at December 31, 2016 $ 643 $ 103

Product Warranty

Product Warranty	12 Months Ended
	Dec. 31, 2016
Product Warranties Disclosures [Abstract]
Product Warranty	Product Warranty As of December 31, 2016 and 2015 , MRV's product warranty liability recorded in accrued liabilities was $0.6 million . The following table summarizes the activity related to the product warranty liability (in thousands): Balance at beginning of period Cost of warranty claims Accruals for product warranties Balance at end of period December 31, 2014 $ 578 $ (17 ) $ 55 $ 616 December 31, 2015 $ 616 $ — $ (23 ) $ 593 December 31, 2016 $ 593 $ (72 ) $ 66 $ 587 MRV accrues for warranty costs as part of its cost of sales based on associated material product costs, technical support labor costs and associated overhead. The products sold are generally covered by a warranty for periods of 90 days to three years .

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchase Programs and Stock Repurchase On August 15, 2013, the Company's Board of Directors terminated an existing stock repurchase plan and approved a replacement repurchase plan on substantially the same terms in an amount up to $7.0 million that expired on May 14, 2014. From August 15, 2013, through December 31, 2014 , the Company repurchased 127,510 shares at a total cost of approximately $1.3 million . No additional shares were repurchased during year ended December 31, 2014 , under this plan. On December 16, 2014, the Company's Board of Directors approved a repurchase of shares of the Company's Common Stock in an amount up to $8.0 million under a share repurchase plan that expired in accordance with its terms on November 13, 2015. During the year ended December 31, 2015 , the Company repurchased 502,077 shares at a total cost of approximately $4.9 million , excluding commission under this share repurchase plan. On March 15, 2016, the Company's Board of Directors approved a repurchase of shares of the Company's Common Stock in an amount up to $10.0 million under a stock repurchase program scheduled to expire on March 10, 2017. On November 2, 2016, the Company's Board of Directors approved the termination of the Company's stock repurchase program. During the year ended December 31, 2016 , the Company repurchased a total of 264,058 shares at a total cost of approximately $2.7 million , excluding commissions, under this stock repurchase program, leaving remaining authority to repurchase shares up to an additional $7.3 million , excluding commissions, under this stock repurchase program prior to its termination. Equity Grants MRV's equity plans provide for granting options, restricted stock or other forms of equity to purchase shares of MRV's Common Stock, to employees, directors and non-employees performing consulting or advisory services for the Company. Under these plans, stock options exercise prices generally equal the fair market value of MRV's Common Stock at the date of grant and restricted stock grants do not have exercise prices. The options generally vest over one year to three years with expiration dates of ten years from the date of grant and all outstanding restricted stock grants vest one year from the date of grant. The Company's 2015 Long Term Incentive Plan provides for granting options, restricted stock, and other forms of equity, and is at the discretion of the Board of Directors. As of December 31, 2016 , 531,204 shares of Common Stock were available for future awards under the plan. (See Note 12, Share-Based Compensation ) Dividends The payment of dividends on the Company's Common Stock is within the discretion of the Company's Board of Directors. The Board of Directors did not declare cash dividends during the years ended December 31, 2016, 2015 and 2014. The Board of Directors regularly evaluates its capital position to consider the return of cash to stockholders. The Board of Directors does not currently have plans to begin paying a regular dividend.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation MRV records share-based compensation expense at fair value. The following table summarizes the impact on MRV's results of continuing operations of recording share-based compensation for the years ended December 31, 2016 , 2015 and 2014 (in thousands): Year Ended December 31: 2016 2015 2014 Cost of goods sold $ 105 $ 131 $ 113 Product development and engineering 222 232 166 Selling, general and administrative 1,177 756 653 Total share-based compensation expense (1) $ 1,504 $ 1,119 $ 932 (1) Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods. Equity Incentive Plans In May 2015, MRV's stockholders approved the 2015 Long Term Incentive Plan (LTIP) to replace MRV's outstanding equity compensation plan, the Omnibus Plan. Upon adoption of the 2015 Long Term Incentive Plan, no further shares were available for future grants of options or warrants under its predecessor plans including shares that become available as a consequence of the cancellation or forfeiture of outstanding options granted under such plans. All stock options granted under the 2015 LTIP have a maximum contractual life of ten years from the date of the grant and typically vest over a period of one to three years from the date of the grant. Share-Based Payment Awards The Company granted 245,539 , 255,914 and 198,647 stock options during the years ended December 31, 2016 , 2015 and 2014 , respectively, with the related average grant date fair value of $4.89 , $4.48 and $6.95 per share, respectively. The Company granted restricted shares of 90,869 , 95,587 and 100,355 at average grant date fair values of $10.95 , $10.58 and $13.91 per share during the years ended December 31, 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , the total unrecognized share-based compensation balance for unvested securities, net of expected forfeitures, was $2.0 million , which is expected to be amortized over a weighted-average period of 1.8 years. Stock Options Valuation Assumptions MRV uses the Black-Scholes option pricing model to estimate the fair value of stock option awards. The Black-Scholes model requires the use of subjective and complex assumptions including the option's expected life and the underlying stock price volatility. MRV bases volatility on the Company's historical quoted prices and peer company data. The expected term of options granted is based on the simplified method, using the mid-point between the vesting term and the original contractual term. The risk free interest rate is determined based on U.S. Treasury yields with equivalent remaining terms in effect at the time of the grant. The following weighted average assumptions were used for estimating the fair value of options granted during the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31: 2016 2015 2014 Risk-free interest rate 1.4 % 1.7 % 2.0 % Dividend yield (1) — — — Volatility 46 % 43 % 50 % Expected life (in years) 5.9 5.9 5.9 (1) As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used. Share-Based Payment Award Activity The following table summarizes option share-based payment award activity for the three-year period ended December 31, 2016 : Shares under option Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2013 349,454 $ 28.15 4.34 $ 48,939 Granted 198,647 $ 14.11 Exercised (6,812 ) $ 10.55 Forfeited (133,339 ) $ 26.58 Balance as of December 31, 2014 407,950 $ 22.12 4.89 $ 22,479 Granted 255,914 $ 10.46 Exercised (16,878 ) $ 11.27 Forfeited (183,073 ) $ 23.84 Balance as of December 31, 2015 463,913 $ 15.10 7.96 $ 614,591 Granted 245,539 $ 10.93 Exercised (15,415 ) $ 9.42 Forfeited (94,064 ) $ 20.77 Outstanding, December 31, 2016 599,973 $ 12.68 8.05 $ — Vested and expected to vest, December 31, 2016 544,232 $ 12.86 7.94 $ — Exercisable, December 31, 2016 219,956 $ 15.57 6.48 $ — The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2016 : Range of Exercise prices Options outstanding as of December 31, 2016 Weighted average remaining contractual life (years) Weighted average exercise price Options exercisable as of December 31, 2016 Weighted average exercise price of exercisable options $9.10 - $9.20 21,998 6.86 $ 9.12 18,609 $ 9.10 $9.63 - $9.63 155,636 8.26 $ 9.63 64,315 $ 9.63 $9.72 - $10.55 14,007 5.59 $ 10.06 12,675 $ 10.09 $10.95 - $10.95 225,650 9.42 $ 10.95 — $ — $12.12 - $13.40 63,416 8.38 $ 12.78 30,086 $ 12.94 $13.46 - $14.51 81,030 6.81 $ 14.27 57,701 $ 14.23 $16.80 - $27.60 19,461 4.75 $ 23.79 17,795 $ 24.18 $29.80 - $29.80 4,150 0.92 $ 29.80 4,150 $ 29.80 $32.00 - $32.00 1,200 1.33 $ 32.00 1,200 $ 32.00 $52.60 - $52.60 13,425 0.54 $ 52.60 13,425 $ 52.60 $9.10 - $52.60 599,973 8.05 $ 12.68 219,956 $ 15.57 Restricted Stock Awards The Company accounts for the fair value of the restricted shares using the closing market price of the Company’s Common Stock on the date of grant. The following table summarizes restricted stock award activity for the three-year period ended December 31, 2016 : Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share Aggregate intrinsic value Balance as of December 31, 2013 81,193 $ 9.94 $ 870,399 Granted 100,355 $ 13.91 Released (39,238 ) $ 10.08 Canceled (39,276 ) $ 12.45 Balance as of December 31, 2014 103,034 $ 12.80 $ 1,023,128 Granted 95,587 $ 10.58 Released (41,136 ) $ 12.58 Canceled (14,306 ) $ 12.79 Balance as of December 31, 2015 143,179 $ 11.38 $ 1,749,647 Granted 90,869 $ 10.95 Released (65,766 ) $ 11.23 Canceled (22,326 ) $ 11.94 Outstanding, December 31, 2016 145,956 $ 11.14 $ 1,189,541 The following table summarizes certain stock option exercise and restricted share activity during the periods presented (in thousands): Year ended December 31: 2016 2015 2014 Total intrinsic value of stock options exercised $ 34 $ 42 $ 17 Cash received from stock options exercised $ 145 $ 190 $ 72 Total value of restricted shares vested $ 697 $ 380 $ 525

Geographic Information

Geographic Information	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Geographic Information	Geographic Information Following the completion of the sale of the Tecnonet business unit on December 3, 2015, MRV now has one reportable segment: Network Equipment. The Network Equipment segment designs, manufactures, distributes and services optical networking solutions and Internet infrastructure products. Network Equipment revenue primarily consists of optical communication systems that include metro ethernet equipment, optical transport equipment, lab automation equipment, out-of-band network equipment, and the related service revenue and fiber optic components sold as part of system solutions. Management evaluates reportable segment information pursuant to ASC 280, Segment Reporting. Based on this evaluation as of December 31, 2016 , management has determined the Company operates as a single reportable segment. Revenues: The following table summarizes external revenue by geographic region (in thousands): Year Ended December 31: 2016 % of revenue 2015 % of revenue 2014 % of revenue United States $ 39,727 49 % $ 42,933 49 % $ 51,036 59 % Americas (Excluding the U.S.) 8,250 10 % 6,828 8 % 1,507 2 % Europe 14,531 18 % 19,463 22 % 20,478 24 % Asia Pacific 17,807 23 % 18,975 21 % 13,517 15 % Total $ 80,315 100 % $ 88,199 100 % $ 86,538 100 % A significant percentage of the revenues generated in the Asia Pacific region are derived from Australia and accounted for 20% , 18% and 13% of our consolidated revenue for the years ended December 31, 2016 , 2015 and 2014 , respectively. Revenues generated in Europe and the Americas (excluding U.S.) did not reflect any significant individual country concentration for the years ended December 31, 2016 , 2015 and 2014 . Significant Customers: Revenue from one customer accounted for 17% , 19% and 11% of our consolidated revenue for the years ended December 31, 2016 , 2015 and 2014 , respectively. As of December 31, 2016 and 2015 , amounts due from this customer accounted for 11% and 15% of our consolidated gross accounts receivables, respectively. Revenue from another customer accounted for 12% of our consolidated revenue for the years ended December 31, 2016 , 2015 and 2014 . As of December 31, 2016 and 2015 , amounts due from this customer accounted for 11% and 5% of our consolidated gross accounts receivables, respectively. Long-lived Assets: The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): December 31: 2016 2015 United States $ 2,336 $ 2,808 Americas (Excluding the U.S.) — — Europe 1 782 1,223 Asia Pacific 12 19 Total $ 3,130 $ 4,050 (1) Includes Long-lived Assets held in Israel of $0.8 million and $1.2 million as December 31, 2015 and 2016, respectively.

Other Income (Expense), Net

Other Income (Expense), Net	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Other Income (Expense), Net	Other Income (Expense), Net Following is a summary of other income (expense), net (in thousands): Year ended December 31: 2016 2015 2014 Interest income $ 39 $ 1 $ 5 Gain (loss) on foreign currency transactions (310 ) (133 ) 441 Other (expense) income, net 5 84 225 Total $ (266 ) $ (48 ) $ 671

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	Quarterly Financial Data (Unaudited) The following tables summarize MRV's Consolidated Statements of Operations for 2016 (in thousands): Three months ended: March 31, June 30, September 30, December 31, Revenue $ 18,882 $ 21,584 $ 18,947 $ 20,902 Cost of sales 9,079 11,513 9,981 10,636 Gross profit 9,803 10,071 8,966 10,266 Operating expenses: Product development and engineering 5,344 5,125 4,937 5,075 Selling, general and administrative 8,017 7,007 6,931 7,719 Total operating expenses 13,361 12,132 11,868 12,794 Operating loss (3,558 ) (2,061 ) (2,902 ) (2,528 ) Other income (loss), net (277 ) 74 (180 ) 117 Loss before provision for income taxes (3,835 ) (1,987 ) (3,082 ) (2,411 ) Provision for income taxes 61 36 31 194 Net loss $ (3,896 ) $ (2,023 ) $ (3,113 ) $ (2,605 ) Net loss per share — basic and diluted $ (0.56 ) $ (0.29 ) $ (0.45 ) $ (0.38 ) Basic and diluted weighted average shares 6,981 7,092 6,868 6,808 The above table includes adjustments to revenue for the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 in the amounts of $0.3 million , $0.4 million , $0.3 million and $0.5 million , respectively, related to the reversing of an excess accrual for future product discounts upon the expiration of a customer contract. The following tables summarize MRV's Consolidated Statements of Operations for 2015 (in thousands): Three months ended: March 31, June 30, September 30, December 31, Revenue $ 22,185 $ 24,519 $ 22,933 $ 18,562 Cost of sales 10,641 12,560 10,819 8,599 Gross profit 11,544 11,959 12,114 9,963 Operating expenses: Product development and engineering 5,125 5,310 4,901 5,112 Selling, general and administrative 7,736 7,379 7,281 6,570 Total operating expenses 12,861 12,689 12,182 11,682 Operating loss (1,317 ) (730 ) (68 ) (1,719 ) Interest expense (14 ) (22 ) (11 ) (8 ) Other income (loss), net 81 (296 ) 188 (21 ) Income (loss) from continuing operations before provision for income taxes (1,250 ) (1,048 ) 109 (1,748 ) Provision (benefit) for income taxes 50 77 (39 ) 2,783 Income (loss) from continuing operations (1,300 ) (1,125 ) 148 (4,531 ) Gain (loss) from discontinued operations 232 844 738 (2,185 ) Net income (loss) $ (1,068 ) $ (281 ) $ 886 $ (6,716 ) Net income (loss) per share — basic From continuing operations $ (0.18 ) $ (0.16 ) $ 0.02 $ (0.65 ) From discontinued operations 0.03 0.12 0.11 (0.31 ) Net income (loss) per share — basic $ (0.15 ) $ (0.04 ) $ 0.13 $ (0.96 ) Net income (loss) per share — diluted From continuing operations $ (0.18 ) $ (0.16 ) $ 0.02 $ (0.65 ) From discontinued operations 0.03 0.12 0.11 (0.31 ) Net income (loss) per share — diluted $ (0.15 ) $ (0.04 ) $ 0.13 $ (0.96 ) Basic weighted average shares 7,131 6,988 6,978 6,980 Diluted weighted average shares 7,131 6,988 7,014 6,980 The above table includes a $2.6 million increase in the provision for income taxes for the three months ended December 31, 2015 related to an increase in the Company's valuation allowance on deferred tax assets. (See Note 6, Income Taxes ).

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 9, 2017, the Company entered into an agreement to accelerate the termination date of its existing lease amendment for office space (Fulbright building) in Chatsworth, California (Los Angeles area) to January 31, 2017. The original lease term included an expiration date of March 31, 2017, and would have required remaining lease payments in the amount $0.1 million . This facility had remained idle since August 2016 when the Company consolidated its two existing Chatsworth facilities. On February 1, 2017, the Company entered into an agreement to extend its current lease of office and warehouse space (Mason building) located in Chatsworth, California (Los Angeles area) through March 31, 2019, with no option to extend the lease term. The remaining lease payments will approximate $0.6 million .

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition MRV's revenue-generating products consist of switches and routers, console management, physical layer products, and fiber optic components. We recognize product revenue, net of sales discounts, returns and allowances, when persuasive evidence of an arrangement exists, delivery has occurred and all significant contractual obligations have been satisfied, the fee is fixed or determinable and collection is considered reasonably assured. Products are generally shipped "FOB shipping point," with no right of return and revenue is recognized upon shipment. If revenue is to be recognized upon delivery, such delivery date is tracked through information provided by the third party shipping company we use to deliver the product to the customer. Sales of services and system support are deferred and recognized ratably over the contract period. Sales to end customers with contingencies, such as rights of return, rotation rights, conditional acceptance provisions and price protection, are infrequent and insignificant and are deferred until the contingencies have been satisfied or the contingent period has lapsed. For sales to distributors, we generally recognize revenue when product is sold to the distributor rather than when the product is sold by the distributor to the end user. In certain circumstances, distributors have limited rights of return such as stock rotation rights. We estimate and establish allowances for expected future product returns and credits. We record a reduction in revenue for estimated future product returns and future credits to be issued to the customer in the period in which revenue is recognized, and for future credits to be issued in relation to price protection at the time we make changes to our distributor price book. We monitor product returns and potential price adjustments on an ongoing basis and estimate future returns and credits based on historical sales returns, analysis of credit memo data, and other factors known at the time of revenue recognition. MRV collects sales taxes from its customers to remit to the applicable taxing authorities. These amounts are not included in revenues, but are included on the balance sheet in accrued liabilities. Amounts billed to customers in a sale transaction related to shipping and handling represent revenues earned for goods provided and are classified as revenue. Shipping and handling costs are classified as cost of sales. MRV generally warrants its products against defects in materials and workmanship for 90 days to three -year periods. The estimated cost of warranty obligations and sales returns and other allowances are recognized at the time of revenue recognition based on contract terms and prior claims experience. Accounting for Multiple-Element Arrangements. We allocate arrangement consideration at the inception of the arrangement to all deliverables using the relative selling price method. The selling price we use for each deliverable is based on (a) vendor-specific objective evidence if available; (b) third-party evidence if vendor-specific objective evidence is not available; or (c) best estimate of selling price if neither vendor-specific objective evidence nor third-party evidence is available. We allocate discounts in the arrangement proportionally on the basis of the selling price of each deliverable.
Cash and Cash Equivalents	Cash and Cash Equivalents MRV treats highly liquid investments with an original maturity of 90 days or less as cash equivalents. Investments with original maturities at the date of purchase greater than 90 days and remaining time to maturity of one year or less as short-term and are included in restricted time deposits. MRV maintains cash balances and investments in qualified financial institutions, and at various times such amounts are in excess of federal insured limits.
Restricted Time Deposits	Restricted Time Deposits Restricted time deposits represent investments that are restricted as to withdrawal or use and from time to time may include certificates of deposit. The investments in and releases of restricted time deposits are included in investing activities on the Company's Consolidated Statements of Cash Flows because the funds are invested in certificates of deposit.
Concentration of Credit Risk, Accounts Receivable and Allowance for Doubtful Accounts	Concentration of Credit Risk, Accounts Receivable and Allowance for Doubtful Accounts Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents placed with high credit quality institutions and accounts receivable due from customers. Management evaluates the collectability of accounts receivable based on a combination of factors. If management becomes aware of a customer's inability to meet its financial obligations after a sale has occurred, the Company records an allowance to reduce the net receivable to the amount that management reasonably believes to be collectable from the customer. If the financial conditions of MRV's customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. Accounts receivable are charged off at the point they are considered uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost or market and consist of materials, labor and overhead. Cost is computed using global standard cost, which approximates actual cost, on a first-in, first-out basis. Intercompany sales are recorded using standard costs for book purposes, and are eliminated in consolidation. If management estimates that the net realizable value of inventory is less than the cost of the inventory recorded, an adjustment to the cost basis equal to the difference between the cost of the inventory and the estimated net realizable market value is recorded. This adjustment is recorded as a charge to cost of goods sold, and includes estimates for excess quantities and obsolete inventory. If changes in market conditions result in reductions in the estimated net realizable value of our inventory below previous estimates, we would make further adjustments in the period in which we make such a determination and record a charge to cost of goods sold. At each balance sheet date, management evaluates the ending inventories for excess quantities or obsolescence. This evaluation includes analysis of sales levels and projections of future demand. Based on this evaluation, management writes down the inventory to net realizable value if necessary. At the time of recording the adjustment, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration of, or increase in, that newly established cost basis.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred and the costs of additions and betterments that increase the useful lives of the assets are capitalized. When property or equipment are disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is included in other income, net, in the accompanying Consolidated Statements of Operations. Depreciation is computed using the straight line method over the estimated useful lives of the related assets, as follows: Life (years) Asset category From To Machinery and equipment 2 5 Computer hardware and software 3 7 Leasehold improvements 1 10 Furniture and fixtures 3 15
Intangible Assets	Intangible Assets Intangible assets that are determined to have definite lives are amortized over their useful lives.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Management evaluates its long-lived assets, such as property and equipment and other long-term assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may be impaired. Management takes into consideration events or changes such as product discontinuance, plant closures, product dispositions and history of operating losses or other changes in circumstances to indicate that the carrying amount may not be recoverable. The carrying value of an asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the estimated fair value. Fair value is determined using the anticipated cash flows discounted at a rate based on our weighted average cost of capital, which represents the blended after-tax costs of debt and equity.
Fair Value of Financial Instruments	Fair Value of Financial Instruments MRV's financial instruments including cash and cash equivalents, restricted time deposits, accounts receivable, other receivables included in other assets and accounts payable are carried at cost, which approximates their fair value. The fair values of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The Company follows a framework for measuring fair value using a three-level hierarchy that prioritizes the use of observable inputs. The fair value hierarchy is divided into three levels based on the source of inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs for similar instruments; Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. All of MRV's financial assets and a majority of its financial liabilities that are measured at fair value are measured using the unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Under this framework, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Management has not elected the fair value option for non-financial assets and liabilities.
Other Current Assets	Other Current Assets Other current assets include other accounts receivable, prepaid expenses and other assets that will be consumed or collected within a twelve month period.
Liability for Severance Pay	Liability for Severance Pay Under the laws of certain foreign jurisdictions, MRV is obligated to make severance payments to employees in those foreign jurisdictions on the basis of factors such as each employee's current salary and length of employment. The liability for severance pay is calculated as the amount that the Company would be required to pay if every employee were to separate as of the end of the period, and is recorded as part of other long-term liabilities.
Cost of Sales	Cost of Sales Cost of sales includes material, depreciation on fixed assets used in the manufacturing process, shipping costs, direct labor and overhead.
Product Development and Engineering	Product Development and Engineering Product development and engineering costs are charged to expense as incurred.
Software Development Costs and Internal Use Software Development Costs	Software Development Costs Development costs related to software products for sale or to be included in our products are expensed as incurred until the technological feasibility of the product has been established. Technological feasibility occurs when a working model is completed. After technological feasibility is established, additional costs are capitalized. We believe that our process for internally developed software is essentially completed concurrent with the establishment of technological feasibility, and, accordingly, no software development costs for internally developed software have been capitalized to date. Internal Use Software Development Costs Any software that we acquire, internally develop, or modify solely to meet our internal needs, and for which we have no substantive plan to market the software externally, is capitalized during the development phase. Costs incurred during the research phase are expensed as incurred.
Sales and Marketing	Sales and Marketing Sales and marketing costs are charged to expense as incurred.
Income Taxes	Income Taxes We account for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We use a risk based approach and analysis to identify potential tax exposures, estimate those tax exposures, and record appropriate uncertain tax liabilities based on whether or not the tax position is more-likely-than-not to be sustained under examination. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations if the sustainability of the uncertain tax position does not meet the "more likely than not" recognition threshold based on its technical merits. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet.
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of shares of common stock ("Common Stock") outstanding, including restricted shares which, although they are legally outstanding and have voting rights, are subject to vesting and are treated as Common Stock equivalents in calculating basic net income (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding and dilutive potential shares of Common Stock from stock options and warrants outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each period using the treasury stock method. Employee equity share options, non-vested shares and similar equity instruments granted by MRV, are treated as potential shares of Common Stock outstanding in computing diluted net income per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service not yet recognized, and the amount of income tax benefits that would be realized and recorded in additional paid-in capital if the deduction for the award would reduce income taxes payable are assumed to be used to repurchase shares.
Share-Based Compensation	Share-Based Compensation The Company accounts for stock-based payment awards at fair value at the grant date. The estimated fair value of stock options and warrants are determined using the Black-Scholes valuation model. The assumptions used in calculating the fair value of share-based payment awards represent MRV's best estimates. Those estimates may be impacted by certain variables including stock price volatility, employee stock option exercise behaviors, additional stock option grants, estimates of forfeitures, and the related income tax impact. Stock-based compensation cost is recorded as expense using the straight-line method over the requisite service period.
Recent Accounting Pronouncements	Recently Issued Accounting Standards Not Yet Adopted We consider the applicability and impact of all Accounting Standards Updates (“ASUs”) not yet adopted. The ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations. In May 2014, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09") and in August 2015 issued ASU No. 2015-14, which amended the effective date of the standard to annual reporting periods beginning after December 15, 2017. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. During 2016, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”). The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). Management is continuing to assess the potential impact that adopting the new revenue standards will have on its consolidated financial statements and footnote disclosures. The Company’s current analysis indicates that the most significant effect of the new standard relates to the Company's accounting for certain fulfillment and contract acquisition costs, which will now be capitalized, rather than expensed as incurred, which is the Company's current practice under the current guidance. In addition, the Company expects to continue recognizing product sales at a point in time and service revenue over time. While the Company continues its assessment of the potential effects of the new standard, management anticipates adopting the new standard on a modified retrospective basis effective January 1, 2018. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory" (“ASU 2015-11”). ASU 2015-11 simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using the last-in, first out (LIFO), or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value, and defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 will become effective for the Company for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management has determined that the adoption of ASU 2015-11 on January 1, 2017, will not have a significant impact on its consolidated financial statements and footnote disclosures. In November 2015, the FASB issued ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"). The amendments in ASU 2015-17 simplify the presentation of deferred income taxes by requiring that deferred tax assets and liabilities be classified as non-current. ASU 2015-17 will become effective for the Company for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management has determined that the adoption of ASU 2015-17 on January 1, 2017, will not have a significant impact on its consolidated financial statements and footnote disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases" ("ASU 2016-02"). The amendments in ASU 2016-02 require companies that lease assets to recognize on their balance sheets the assets and liabilities for the rights and obligations generated by contracts longer than a year. ASU 2016-02 will become effective for the Company for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The guidance is required to be applied using the modified retrospective transition approach. Early adoption is permitted. Management is currently evaluating the potential impact that adopting ASU 2016-02 will have on its condensed consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Stock Compensation (Topic 718): Improvements to employee Share-Based Payment Accounting" ("ASU 2016-09"). The amendments in ASU 2016-09 simplify the accounting for share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 will become effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management has determined that the adoption of ASU 2016-09 on January 1, 2017, will not have a significant impact on its consolidated financial statements and footnote disclosures.
Use of Estimates	Use of Estimates The preparation of these consolidated financial statements require management to make certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. On an ongoing basis, management evaluates its significant estimates and assumptions, including those related to revenue recognition, stock-based compensation, inventory valuation, accrued warranty, allowance for doubtful accounts, and accounting for income taxes. Management bases its estimates on historical and anticipated results, trends and on various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ materially from those estimates.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of allowance for doubtful accounts	The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Year ended: Balance at beginning of period Charged to expense Deductions Effect of foreign currency exchange rates Balance at end of period December 31, 2014 $ 1,117 42 (91 ) (6 ) $ 1,062 December 31, 2015 $ 1,062 40 (38 ) (4 ) $ 1,060 December 31, 2016 $ 1,060 (5 ) (795 ) 7 $ 267
Schedule of inventory	Inventories, net of reserves, consisted of the following (in thousands): December 31: 2016 2015 Raw materials $ 2,485 $ 3,132 Work-in process 347 839 Finished goods 6,825 6,255 Total inventories $ 9,657 $ 10,226
Schedule of property, plant and equipment	Depreciation is computed using the straight line method over the estimated useful lives of the related assets, as follows: Life (years) Asset category From To Machinery and equipment 2 5 Computer hardware and software 3 7 Leasehold improvements 1 10 Furniture and fixtures 3 15 Property and Equipment Property and equipment, at cost, consisted of the following (in thousands): December 31: 2016 2015 Machinery and equipment $ 9,026 $ 8,557 Computer hardware and software 6,080 6,512 Leasehold improvements 2,041 2,406 Furniture and fixtures 382 438 Construction in progress 53 119 Total property and equipment, at cost 17,582 18,032 Less — accumulated depreciation and amortization (14,452 ) (13,982 ) Total property and equipment $ 3,130 $ 4,050
Schedule of cash and cash equivalents	Cash equivalents are included in the Consolidated Balance Sheets as follows (in thousands): Cost Fair Value December 31, 2015 $ 1,807 $ 1,807

Discontinued Operations (Tables

Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Results of operations of discontinued operation	The results of operations of Tecnonet for the years ended December 31, 2015 and 2014 that are reflected in consolidated statements of operations as discontinued operations consist of the following (in thousands): Year Ended December 31: 2015 2014 Revenue: Product revenue $ 32,315 $ 47,649 Service revenue 30,274 37,869 Total revenue 62,589 85,518 Cost of Revenue: Cost of product 28,472 42,883 Cost of services 24,181 29,458 Total cost of revenue 52,653 72,341 Gross profit 9,936 13,177 Selling, general and administrative (1) 6,574 7,615 Operating income 3,362 5,562 Interest expense (124 ) (305 ) Cumulative translation loss recognized upon sale of Tecnonet (2,180 ) — Other expense, net (307 ) (444 ) Income from discontinued operations before income taxes 751 4,813 Provision for income taxes 1,311 2,430 Income (loss) from discontinued operations, net of tax (560 ) 2,383 Gain on sale of Tecnonet, net of tax 189 — Net income (loss) from discontinued operations, net of income taxes $ (371 ) $ 2,383 (1) Includes Transaction costs of $0.8 million in 2015.

Property and Equipment and In28

Property and Equipment and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Assets [Abstract]
Schedule of future amortization expense	The following table illustrates the estimated future amortization expense of intangible assets as of December 31, 2016 (in thousands): Year ending December 31, Estimated Amortization Expense 2017 $ 305 2018 247 2019 247 2020 149 2021 110 Thereafter 6 Total $ 1,064
Schedule of property, plant and equipment	Depreciation is computed using the straight line method over the estimated useful lives of the related assets, as follows: Life (years) Asset category From To Machinery and equipment 2 5 Computer hardware and software 3 7 Leasehold improvements 1 10 Furniture and fixtures 3 15 Property and Equipment Property and equipment, at cost, consisted of the following (in thousands): December 31: 2016 2015 Machinery and equipment $ 9,026 $ 8,557 Computer hardware and software 6,080 6,512 Leasehold improvements 2,041 2,406 Furniture and fixtures 382 438 Construction in progress 53 119 Total property and equipment, at cost 17,582 18,032 Less — accumulated depreciation and amortization (14,452 ) (13,982 ) Total property and equipment $ 3,130 $ 4,050

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued liabilities	Accrued liabilities consisted of the following (in thousands): December 31: 2016 2015 Payroll and related $ 5,552 $ 6,514 Professional fees 1,185 1,284 Non-income taxes 489 483 Product warranty 587 593 Severance and other employee related costs 643 — Other 739 1,098 Total accrued liabilities $ 9,195 $ 9,972

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of income before income tax, domestic and foreign	For financial reporting purposes, loss from continuing operations before provision for income taxes includes the following (in thousands): Year ended December 31: 2016 2015 2014 United States $ (8,499 ) $ (3,308 ) $ (7,993 ) Foreign (2,816 ) (629 ) (4,672 ) Loss from continuing operations before provision for income taxes $ (11,315 ) $ (3,937 ) $ (12,665 )
Provision for income taxes	The provision (benefit) for income taxes consists of the following (in thousands): Year ended December 31: 2016 2015 2014 Current: State $ 4 $ 49 $ (89 ) Foreign 318 144 68 Total current 322 193 (21 ) Deferred: Foreign — 2,678 1,894 Total deferred — 2,678 1,894 Provision for income taxes $ 322 $ 2,871 $ 1,873
Schedule of effective income tax rate reconciliation	The income tax provision differs from the amount computed by applying the federal statutory income tax rate as follows: Year ended December 31: 2016 2015 2014 Income tax provision, at statutory federal rate 34 % 34 % 34 % State and local income taxes, net of federal income taxes effect 3 4 3 Permanent differences (1 ) (4 ) (1 ) Foreign taxes at rates different than domestic rates (2 ) (1 ) (3 ) Expired capital loss carryforwards — (880 ) — Change in tax rates (12 ) — — Change in valuation allowance (23 ) 775 (47 ) Other adjustments (2 ) (1 ) (1 ) Effective tax rate (3 )% (73 )% (15 )%
Components of deferred income taxes	The components of deferred income taxes consist of the following (in thousands): December 31: 2016 2015 Deferred tax assets: Net operating losses $ 92,176 $ 91,893 Allowance for doubtful accounts 118 365 Inventory reserve 2,413 3,161 Accrued liabilities 2,397 2,794 Other 4,162 4,697 Total deferred tax assets 101,266 102,910 Valuation allowance (100,810 ) (102,747 ) Net deferred tax assets 456 163 Deferred tax liabilities: Depreciation and amortization (456 ) (163 ) Total deferred tax liabilities (456 ) (163 ) Total deferred income taxes $ — $ —
Summary of valuation allowance	The change in the valuation allowance is as follows (in millions): December 31: 2016 2015 2014 Balance at beginning of period $ (103 ) $ (139 ) $ (133 ) (Increase) decrease in valuation allowance 2 36 (6 ) Balance at end of period $ (101 ) $ (103 ) $ (139 )
Schedule of unrecognized tax benefits roll forward	A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): December 31: 2016 2015 2014 Balance at beginning of period $ (81 ) $ (100 ) $ (134 ) Reductions related to prior year positions 43 19 34 Balance at end of period $ (38 ) $ (81 ) $ (100 )

Long-term liabilities (Tables)

Long-term liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Other long-term liabilities	Long-term liabilities consisted of the following (in thousands): December 31: 2016 2015 Liability for social contribution (1) $ 2,643 $ 2,729 Long-term portion of deferred revenue 797 1,036 Other 38 81 Total Long-term liabilities $ 3,478 $ 3,846 (1) Represents statutory post-employment benefits related to Israeli operations.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Aggregate minimum annual lease payments under leases in effect	Following are the aggregate minimum annual lease payments under leases in effect as of December 31, 2016 (in thousands): Year ending December 31: Operating leases 2017 $ 984 2018 607 2019 400 2020 251 Total $ 2,242
Schedule of restructuring reserve	The changes in reserves associated with these measures for fiscal 2016 consisted of the following and are included in accrued liabilities on the accompanying Consolidated Balance Sheets (in thousands): Severance and Other employee related costs Facility Closures and Asset impairments Balance at January 1, 2016 $ — $ — Provision for cost saving measures 1,557 166 Cash payments made (914 ) (63 ) Balance at December 31, 2016 $ 643 $ 103

Product Warranty (Tables)

Product Warranty (Tables)	12 Months Ended
	Dec. 31, 2016
Product Warranties Disclosures [Abstract]
Activity related to the product warranty liability	The following table summarizes the activity related to the product warranty liability (in thousands): Balance at beginning of period Cost of warranty claims Accruals for product warranties Balance at end of period December 31, 2014 $ 578 $ (17 ) $ 55 $ 616 December 31, 2015 $ 616 $ — $ (23 ) $ 593 December 31, 2016 $ 593 $ (72 ) $ 66 $ 587

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Impact on results of operations of recording share-based compensation	The following table summarizes the impact on MRV's results of continuing operations of recording share-based compensation for the years ended December 31, 2016 , 2015 and 2014 (in thousands): Year Ended December 31: 2016 2015 2014 Cost of goods sold $ 105 $ 131 $ 113 Product development and engineering 222 232 166 Selling, general and administrative 1,177 756 653 Total share-based compensation expense (1) $ 1,504 $ 1,119 $ 932 (1) Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods
Weighted average assumptions used for estimating the fair value of options granted	The following weighted average assumptions were used for estimating the fair value of options granted during the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31: 2016 2015 2014 Risk-free interest rate 1.4 % 1.7 % 2.0 % Dividend yield (1) — — — Volatility 46 % 43 % 50 % Expected life (in years) 5.9 5.9 5.9 (1) As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used.
Option share-based payment award activity	The following table summarizes option share-based payment award activity for the three-year period ended December 31, 2016 : Shares under option Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2013 349,454 $ 28.15 4.34 $ 48,939 Granted 198,647 $ 14.11 Exercised (6,812 ) $ 10.55 Forfeited (133,339 ) $ 26.58 Balance as of December 31, 2014 407,950 $ 22.12 4.89 $ 22,479 Granted 255,914 $ 10.46 Exercised (16,878 ) $ 11.27 Forfeited (183,073 ) $ 23.84 Balance as of December 31, 2015 463,913 $ 15.10 7.96 $ 614,591 Granted 245,539 $ 10.93 Exercised (15,415 ) $ 9.42 Forfeited (94,064 ) $ 20.77 Outstanding, December 31, 2016 599,973 $ 12.68 8.05 $ — Vested and expected to vest, December 31, 2016 544,232 $ 12.86 7.94 $ — Exercisable, December 31, 2016 219,956 $ 15.57 6.48 $ — The following table summarizes certain stock option exercise and restricted share activity during the periods presented (in thousands): Year ended December 31: 2016 2015 2014 Total intrinsic value of stock options exercised $ 34 $ 42 $ 17 Cash received from stock options exercised $ 145 $ 190 $ 72 Total value of restricted shares vested $ 697 $ 380 $ 525
Significant ranges of outstanding and exercisable options	The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2016 : Range of Exercise prices Options outstanding as of December 31, 2016 Weighted average remaining contractual life (years) Weighted average exercise price Options exercisable as of December 31, 2016 Weighted average exercise price of exercisable options $9.10 - $9.20 21,998 6.86 $ 9.12 18,609 $ 9.10 $9.63 - $9.63 155,636 8.26 $ 9.63 64,315 $ 9.63 $9.72 - $10.55 14,007 5.59 $ 10.06 12,675 $ 10.09 $10.95 - $10.95 225,650 9.42 $ 10.95 — $ — $12.12 - $13.40 63,416 8.38 $ 12.78 30,086 $ 12.94 $13.46 - $14.51 81,030 6.81 $ 14.27 57,701 $ 14.23 $16.80 - $27.60 19,461 4.75 $ 23.79 17,795 $ 24.18 $29.80 - $29.80 4,150 0.92 $ 29.80 4,150 $ 29.80 $32.00 - $32.00 1,200 1.33 $ 32.00 1,200 $ 32.00 $52.60 - $52.60 13,425 0.54 $ 52.60 13,425 $ 52.60 $9.10 - $52.60 599,973 8.05 $ 12.68 219,956 $ 15.57
Restricted stock awards	The following table summarizes restricted stock award activity for the three-year period ended December 31, 2016 : Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share Aggregate intrinsic value Balance as of December 31, 2013 81,193 $ 9.94 $ 870,399 Granted 100,355 $ 13.91 Released (39,238 ) $ 10.08 Canceled (39,276 ) $ 12.45 Balance as of December 31, 2014 103,034 $ 12.80 $ 1,023,128 Granted 95,587 $ 10.58 Released (41,136 ) $ 12.58 Canceled (14,306 ) $ 12.79 Balance as of December 31, 2015 143,179 $ 11.38 $ 1,749,647 Granted 90,869 $ 10.95 Released (65,766 ) $ 11.23 Canceled (22,326 ) $ 11.94 Outstanding, December 31, 2016 145,956 $ 11.14 $ 1,189,541

Geographic Information (Tables)

Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
External revenue and long-lived assets by geographical region	The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): December 31: 2016 2015 United States $ 2,336 $ 2,808 Americas (Excluding the U.S.) — — Europe 1 782 1,223 Asia Pacific 12 19 Total $ 3,130 $ 4,050 (1) Includes Long-lived Assets held in Israel of $0.8 million and $1.2 million as December 31, 2015 and 2016, respectively. The following table summarizes external revenue by geographic region (in thousands): Year Ended December 31: 2016 % of revenue 2015 % of revenue 2014 % of revenue United States $ 39,727 49 % $ 42,933 49 % $ 51,036 59 % Americas (Excluding the U.S.) 8,250 10 % 6,828 8 % 1,507 2 % Europe 14,531 18 % 19,463 22 % 20,478 24 % Asia Pacific 17,807 23 % 18,975 21 % 13,517 15 % Total $ 80,315 100 % $ 88,199 100 % $ 86,538 100 %

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Summary of other income, net	Following is a summary of other income (expense), net (in thousands): Year ended December 31: 2016 2015 2014 Interest income $ 39 $ 1 $ 5 Gain (loss) on foreign currency transactions (310 ) (133 ) 441 Other (expense) income, net 5 84 225 Total $ (266 ) $ (48 ) $ 671

Quarterly Financial Data (Una37

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	The following tables summarize MRV's Consolidated Statements of Operations for 2016 (in thousands): Three months ended: March 31, June 30, September 30, December 31, Revenue $ 18,882 $ 21,584 $ 18,947 $ 20,902 Cost of sales 9,079 11,513 9,981 10,636 Gross profit 9,803 10,071 8,966 10,266 Operating expenses: Product development and engineering 5,344 5,125 4,937 5,075 Selling, general and administrative 8,017 7,007 6,931 7,719 Total operating expenses 13,361 12,132 11,868 12,794 Operating loss (3,558 ) (2,061 ) (2,902 ) (2,528 ) Other income (loss), net (277 ) 74 (180 ) 117 Loss before provision for income taxes (3,835 ) (1,987 ) (3,082 ) (2,411 ) Provision for income taxes 61 36 31 194 Net loss $ (3,896 ) $ (2,023 ) $ (3,113 ) $ (2,605 ) Net loss per share — basic and diluted $ (0.56 ) $ (0.29 ) $ (0.45 ) $ (0.38 ) Basic and diluted weighted average shares 6,981 7,092 6,868 6,808 The above table includes adjustments to revenue for the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 in the amounts of $0.3 million , $0.4 million , $0.3 million and $0.5 million , respectively, related to the reversing of an excess accrual for future product discounts upon the expiration of a customer contract. The following tables summarize MRV's Consolidated Statements of Operations for 2015 (in thousands): Three months ended: March 31, June 30, September 30, December 31, Revenue $ 22,185 $ 24,519 $ 22,933 $ 18,562 Cost of sales 10,641 12,560 10,819 8,599 Gross profit 11,544 11,959 12,114 9,963 Operating expenses: Product development and engineering 5,125 5,310 4,901 5,112 Selling, general and administrative 7,736 7,379 7,281 6,570 Total operating expenses 12,861 12,689 12,182 11,682 Operating loss (1,317 ) (730 ) (68 ) (1,719 ) Interest expense (14 ) (22 ) (11 ) (8 ) Other income (loss), net 81 (296 ) 188 (21 ) Income (loss) from continuing operations before provision for income taxes (1,250 ) (1,048 ) 109 (1,748 ) Provision (benefit) for income taxes 50 77 (39 ) 2,783 Income (loss) from continuing operations (1,300 ) (1,125 ) 148 (4,531 ) Gain (loss) from discontinued operations 232 844 738 (2,185 ) Net income (loss) $ (1,068 ) $ (281 ) $ 886 $ (6,716 ) Net income (loss) per share — basic From continuing operations $ (0.18 ) $ (0.16 ) $ 0.02 $ (0.65 ) From discontinued operations 0.03 0.12 0.11 (0.31 ) Net income (loss) per share — basic $ (0.15 ) $ (0.04 ) $ 0.13 $ (0.96 ) Net income (loss) per share — diluted From continuing operations $ (0.18 ) $ (0.16 ) $ 0.02 $ (0.65 ) From discontinued operations 0.03 0.12 0.11 (0.31 ) Net income (loss) per share — diluted $ (0.15 ) $ (0.04 ) $ 0.13 $ (0.96 ) Basic weighted average shares 7,131 6,988 6,978 6,980 Diluted weighted average shares 7,131 6,988 7,014 6,980

Description of Business and B38

Description of Business and Basis of Presentation (Details) € in Millions, $ in Millions	Feb. 19, 2016EUR (€)	Feb. 19, 2016USD ($)	Jun. 30, 2015segment	Dec. 31, 2016segment	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Number of business segments			2	1
Sales Revenue, Net
Concentration Risk [Line Items]
Concentration risk percentage				100.00%	100.00%	100.00%
Foreign Subsidiaries | Sales Revenue, Net
Concentration Risk [Line Items]
Concentration risk percentage				22.00%	24.00%	26.00%
Tecnonet | Disposed of by Sale
Concentration Risk [Line Items]
Proceeds from Divestiture of Businesses	€ 4.3	$ 4.8

Summary of Significant Accoun39

Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 1,060	$ 1,062	$ 1,117
Charged to expense	(5)	40	42
Deductions	(795)	(38)	(91)
Effect of foreign currency exchange rates	7	(4)	(6)
Balance at end of period	$ 267	$ 1,060	$ 1,062

Summary of Significant Accoun40

Summary of Significant Accounting Policies - Net Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Raw materials	$ 2,485	$ 3,132
Work-in process	347	839
Finished goods	6,825	6,255
Total inventories	$ 9,657	$ 10,226

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Computer hardware and software | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Computer hardware and software | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	1 year
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	10 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	15 years

Summary of Significant Accoun42

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Cash and cash equivalents	$ 25,116,000				$ 26,169,000				$ 25,116,000	$ 26,169,000	$ 16,142,000
Impairment of intangible assets											100,000
Asset impairment charges									0	0	0
Money market funds, at cost					1,807,000					1,807,000
Additional paid-in capital	1,287,336,000				1,285,787,000				1,287,336,000	1,285,787,000
Accounts receivable	14,295,000				14,837,000				14,295,000	14,837,000
Prepaid expenses included in other assets					1,200,000					1,200,000
Other current assets	2,378,000				6,851,000				2,378,000	6,851,000
Capitalized costs for internally developed software									0
Advertising expense									600,000	400,000	900,000
Cost of services									4,874,000	4,123,000	4,232,000
Net income (loss)	$ (2,605,000)	$ (3,113,000)	$ (2,023,000)	$ (3,896,000)	(6,716,000)	$ 886,000	$ (281,000)	$ (1,068,000)	$ (11,637,000)	$ (7,179,000)	$ (12,155,000)
Net loss per share — basic and diluted (usd per share)	$ (0.38)	$ (0.45)	$ (0.29)	$ (0.56)					$ (1.69)	$ (1.02)	$ (1.66)
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)									455,498	295,366	309,309
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)									97,500	97,500	97,500
Fair Value, Inputs, Level 1
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Cash and cash equivalents, fair value					1,807,000					$ 1,807,000
United States
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Cash and cash equivalents	$ 19,200,000				21,600,000				$ 19,200,000	21,600,000
Foreign
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Cash and cash equivalents	5,900,000				4,600,000				5,900,000	4,600,000
Software License Arrangement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Impairment of intangible assets									$ 0	$ 0	$ 100,000
Two major customers | Accounts Receivable
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Concentration risk percentage									22.00%	20.00%
Other Current Assets
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Prepaid expenses included in other assets	1,100,000				1,200,000				$ 1,100,000	$ 1,200,000
Other current assets	1,300,000				900,000				$ 1,300,000	900,000
Tecnonet | Other Current Assets
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Accounts receivable					4,800,000					4,800,000
Minimum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Standard product warranty period									90 days
Maximum
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Standard product warranty period									3 years
Restricted Time Deposit [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Restricted investments	300,000				5,200,000				$ 300,000	5,200,000
Certificates of deposit					5,000,000					5,000,000
Security deposit	$ 300,000				$ 200,000				300,000	$ 200,000
Service Life
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Cost of services									200,000
Net income (loss)									$ (200,000)
Net loss per share — basic and diluted (usd per share)									$ 0.03
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stipulation of settlement, payment to plaintiff, warrants (shares)											250,000
Additional paid-in capital											$ 1,600,000
Expected volatility rate											41.00%
Risk free interest rate											1.50%
Stipulation of settlement, payment to plaintiff, warrants, term											5 years
Warrants, fair value per share (usd per share)											$ 6.59
Warrants exercised (shares)									0	0	152,500
Warrants outstanding (shares)											97,500
Warrant exercise price (usd per share)											$ 8.80

Discontinued Operations - Narr

Discontinued Operations - Narrative (Details) $ in Thousands, € in Millions	Sep. 30, 2015payment	Aug. 10, 2015EUR (€)	Aug. 10, 2015USD ($)	Oct. 31, 2015EUR (€)	Sep. 30, 2015EUR (€)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Feb. 19, 2016EUR (€)	Feb. 19, 2016USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of Tecnonet, net of cash divested and transaction costs in 2015						$ 4,789	$ 8,688	$ 0
Gain on sale of Tecnonet						$ 0	189	0
Tecnonet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from intercompany obligation | €				€ 1.5
Disposed of by Sale | Tecnonet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of Tecnonet, net of cash divested and transaction costs in 2015		€ 15.6	$ 17,000
Proceeds from intercompany obligation		€ 4.1	$ 4,600		€ 1.5
Working capital adjustment									€ 4.3	$ 4,800
Number of payments | payment	2
Gain on sale of Tecnonet							200
Foreign currency translation loss							2,180	$ 0
Transaction costs							800
Disposed of by Sale | Foreign Currency Gain (Loss) | Tecnonet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Foreign currency translation loss							1,000
Disposed of by Sale | Related Party Payables | Tecnonet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Foreign currency translation loss							1,200
Disposed of by Sale | Other Current Assets | Tecnonet
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Working capital adjustment							$ 4,800

Discontinued Operations - Inco

Discontinued Operations - Income Statement and Balance Sheet (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cost of Revenue:
Provision for income taxes	$ 1,311	$ 2,430
Disposed of by Sale | Tecnonet
Revenue:
Product revenue	32,315	47,649
Service revenue	30,274	37,869
Revenue	62,589	85,518
Cost of Revenue:
Cost of product	28,472	42,883
Cost of services	24,181	29,458
Total cost of revenue	52,653	72,341
Gross profit	9,936	13,177
Selling, general and administrative	6,574	7,615
Operating income	3,362	5,562
Interest expense	(124)	(305)
Cumulative translation loss recognized upon sale of Tecnonet	(2,180)	0
Other expense, net	(307)	(444)
Income (loss) before income taxes	751	4,813
Provision for income taxes	1,311	2,430
Income (loss) from operations of discontinued operations	(560)	2,383
Gain on sale of Tecnonet, net of tax	189	0
Net income from discontinued operations, net of income taxes	(371)	$ 2,383
Transaction costs	$ 800

Property and Equipment and In45

Property and Equipment and Intangible Assets - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 17,582	$ 18,032
Less — accumulated depreciation and amortization	(14,452)	(13,982)
Total property and equipment	3,130	4,050
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	9,026	8,557
Computer hardware and software
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	6,080	6,512
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	2,041	2,406
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	382	438
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment, at cost	$ 53	$ 119

Property and Equipment and In46

Property and Equipment and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Depreciation	$ 1,600	$ 1,900	$ 1,900
Intangible assets, net	1,064	1,153
License agreements	400	700
Amortization of intangible assets	300	200	100
Impairment of intangible assets			100
Intangible assets not yet placed into service	200
Software License Arrangement
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 0	$ 0	$ 100
Software License Arrangement | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	3 years
Software License Arrangement | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset useful life	5 years

Property and Equipment and In47

Property and Equipment and Intangible Assets - Amortization Expense Maturity Schedule (Details) $ in Thousands	Dec. 31, 2016USD ($)
Assets [Abstract]
2,017	$ 305
2,018	247
2,019	247
2,020	149
2,021	110
Thereafter	6
Total	$ 1,064

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Payroll and related	$ 5,552	$ 6,514
Professional fees	1,185	1,284
Non-income taxes	489	483
Product warranty	587	593	$ 616	$ 578
Severance and other employee related costs	643	0
Other	739	1,098
Total accrued liabilities	$ 9,195	$ 9,972

Income Taxes - Income Before I

Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
United States									$ (8,499)	$ (3,308)	$ (7,993)
Foreign									(2,816)	(629)	(4,672)
Loss from continuing operations before provision for income taxes	$ (2,411)	$ (3,082)	$ (1,987)	$ (3,835)	$ (1,748)	$ 109	$ (1,048)	$ (1,250)	$ (11,315)	$ (3,937)	$ (12,665)

Income Taxes - Provision for I

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
State									$ 4	$ 49	$ (89)
Foreign									318	144	68
Total current									322	193	(21)
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Foreign									0	2,678	1,894
Total deferred									0	2,678	1,894
Provision for income taxes	$ 194	$ 31	$ 36	$ 61	$ 2,783	$ (39)	$ 77	$ 50	$ 322	$ 2,871	$ 1,873

Income Taxes - Effective Incom

Income Taxes - Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax provision, at statutory federal rate	34.00%	34.00%	34.00%
State and local income taxes, net of federal income taxes effect	3.00%	4.00%	3.00%
Permanent differences	(1.00%)	(4.00%)	(1.00%)
Foreign taxes at rates different than domestic rates	(2.00%)	(1.00%)	(3.00%)
Expired capital loss carryforwards	0.00%	(880.00%)	0.00%
Change in tax rates	(12.00%)	0.00%	0.00%
Change in valuation allowance	(23.00%)	775.00%	(47.00%)
Other adjustments	(2.00%)	(1.00%)	(1.00%)
Effective tax rate	(3.00%)	(73.00%)	(15.00%)

Income Taxes - Components of D

Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Net operating losses	$ 92,176	$ 91,893
Inventory reserve	2,413	3,161
Accrued liabilities	2,397	2,794
Other	4,162	4,697
Total deferred tax assets	101,266	102,910
Valuation allowance	(100,810)	(102,747)
Allowance for doubtful accounts	118	365
Net deferred tax assets	456	163
Deferred tax liabilities:
Depreciation and amortization	(456)	(163)
Total deferred tax liabilities	(456)	(163)
Total deferred income taxes	$ 0	$ 0

Income Taxes - Summary of Valu

Income Taxes - Summary of Valuation Allowance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance [Roll Forward]
Balance at beginning of period	$ (103)	$ (139)	$ (133)
(Increase) decrease in valuation allowance	2	36	(6)
Balance at end of period	$ (101)	$ (103)	$ (139)

Income Taxes - Unrecognized Ta

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits [Rollforward]
Balance at beginning of period	$ (81)	$ (100)	$ (134)
Reductions related to prior year positions	43	19	34
Balance at end of period	$ (38)	$ (81)	$ (100)

Income Taxes - Narrative (Deta

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance									$ (2,000)	$ (36,000)	$ 6,000
Deferred tax assets, net	$ 0				$ 0				0	0
NOL carry forwards, federal	183,300								183,300
NOL carry forwards, state	112,000								112,000
NOL carry forwards, foreign	100,800								100,800
Undistributed earnings of foreign subsidiaries	4,200								4,200
Loss from continuing operations before provision for income taxes	2,411	$ 3,082	$ 1,987	$ 3,835	1,748	$ (109)	$ 1,048	$ 1,250	11,315	3,937	12,665
Income tax netted from Income from Discontinued Operations										1,311	$ 2,430
Israel Tax Authority
Operating Loss Carryforwards [Line Items]
Deferred tax assets, net					$ 2,600					$ 2,600
Federal
Operating Loss Carryforwards [Line Items]
NOL carry forwards increase (decrease)									800
State
Operating Loss Carryforwards [Line Items]
NOL carry forwards increase (decrease)									14,900
Foreign
Operating Loss Carryforwards [Line Items]
NOL carry forwards increase (decrease)									3,400
Tecnonet
Operating Loss Carryforwards [Line Items]
Provision for deferred taxes related to foreign earnings	$ 0								$ 0

Long-term liabilities (Details)

Long-term liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Liability for social contribution	$ 2,643	$ 2,729
Long-term portion of deferred revenue	797	1,036
Other	38	81
Total Long-term liabilities	$ 3,478	$ 3,846

401(k) Plan (Details)

401(k) Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Percent of company match	50.00%
Percent of employees' annual compensation contributed, maximum	6.00%
Matching contributions to the plan	$ 521	$ 424	$ 562

Commitments and Contingencies

Commitments and Contingencies - Operating Leases (Details) $ in Thousands	Dec. 31, 2016USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,017	$ 984
2,018	607
2,019	400
2,020	251
Total	$ 2,242

Commitments and Contingencies59

Commitments and Contingencies - Operating Leases Additional Information (Details) - USD ($)	Dec. 16, 2009	Oct. 08, 1996	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 01, 2017	Jan. 09, 2017
Operating Leased Assets [Line Items]
Rental expense			$ 1,200,000	$ 1,000,000	$ 1,300,000
Total lease payments over the lease term			2,242,000
Bud H. Harris
Operating Leased Assets [Line Items]
Total lease payments over the lease term			33,000
Operating lease, term		10 years
Operating lease, improvement allowance		$ 70,000
Chelmsford Associates, LLC
Operating Leased Assets [Line Items]
Total lease payments over the lease term			1,200,000
Operating lease, term	5 years 6 months
Operating leases, renewal term	5 years
Operating lease, rent abatement	$ 214,067
Mirobin Ltd
Operating Leased Assets [Line Items]
Total lease payments over the lease term			$ 400,000
Subsequent Event | George DiRado
Operating Leased Assets [Line Items]
Total lease payments over the lease term						$ 600,000	$ 100,000

Commitments and Contingencies60

Commitments and Contingencies - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loss Contingencies [Line Items]
Purchase commitments, product manufacturing term	150 days
Manufacturing commitments and component purchase commitments	$ 14,200,000
Remaining minimum amount committed	$ 400,000	$ 200,000
Royalties, percentage of sales of developed products, minimum	2.00%
Royalties, percentage of sales of developed products, maximum	5.00%
Royalties, additional reserve	$ 243,000
Indemnification Agreement
Loss Contingencies [Line Items]
Indemnification obligation, days in excess of statute of limitations	90 days
Indemnification claims deductible	$ 1,000,000
Indemnification claims cap	20,000,000
Loss contingency accrual, provision	0	$ 0
Facility Closures and Asset impairments
Loss Contingencies [Line Items]
Provision for cost saving measures	166,000
Severance and Other employee related costs
Loss Contingencies [Line Items]
Provision for cost saving measures	$ 1,557,000

Commitments and Contingencies61

Commitments and Contingencies - Restructuring Reserve (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Severance and Other employee related costs
Restructuring Reserve [Roll Forward]
Balance at January 1, 2016	$ 0
Provision for cost saving measures	1,557
Cash payments made	(914)
Balance at December 31, 2016	643
Facility Closures and Asset impairments
Restructuring Reserve [Roll Forward]
Balance at January 1, 2016	0
Provision for cost saving measures	166
Cash payments made	(63)
Balance at December 31, 2016	$ 103

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 593	$ 616	$ 578
Cost of warranty claims	(72)	0	(17)
Accruals for product warranties	66	(23)	55
Balance at end of period	$ 587	$ 593	$ 616
Minimum
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Standard product warranty period	90 days
Maximum
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Standard product warranty period	3 years

Stockholders' Equity - Narrati

Stockholders' Equity - Narrative (Details) - USD ($)	5 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 15, 2016	Dec. 16, 2014	Aug. 15, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase of treasury shares, value		$ 2,743,000	$ 4,943,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, expiration period		10 years
Share-based payment award, number of shares available for grant (shares)		531,204
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period		1 year
Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period		3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period		1 year
August 2013 Share Repurchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount							$ 7,013,838
Purchase of treasury shares (shares)	127,510			0
Purchase of treasury shares, value	$ 1,300,000
December 2014 Share Repurchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount						$ 8,000,000
Purchase of treasury shares (shares)			502,077
Purchase of treasury shares, value			$ 4,900,000
March 2016 Share Repurchase Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount					$ 10,000,000
Purchase of treasury shares (shares)		264,058
Purchase of treasury shares, value		$ 2,700,000
Remaining authorized repurchase amount		$ 7,300,000

Share-Based Compensation - Sha

Share-Based Compensation - Share-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,504	$ 1,119	$ 932
Cost of goods sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	105	131	113
Product development and engineering
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	222	232	166
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,177	$ 756	$ 653

Share-Based Compensation - Val

Share-Based Compensation - Valuation Assumptions (Details) - Stock Options	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.40%	1.70%	2.00%
Dividend yield	0.00%	0.00%	0.00%
Volatility	46.00%	43.00%	50.00%
Expected life (in years)	5 years 10 months 24 days	5 years 10 months 24 days	5 years 10 months 24 days

Share-Based Compensation - S66

Share-Based Compensation - Share-Based Payment Award Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, Beginning Balance (shares)	463,913	407,950	349,454
Granted (shares)	245,539	255,914	198,647
Exercised (shares)	(15,415)	(16,878)	(6,812)
Forfeited (shares)	(94,064)	(183,073)	(133,339)
Outstanding, Ending Balance (shares)	599,973	463,913	407,950	349,454
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding, Beginning Balance, weighted average exercise price (usd per share)	$ 15.10	$ 22.12	$ 28.15
Granted, weighted average exercise price (usd per share)	10.93	10.46	14.11
Exercised, weighted average exercise price (usd per share)	9.42	11.27	10.55
Forfeited, weighted average exercise price (usd per share)	20.77	23.84	26.58
Outstanding, Ending Balance, weighted average exercise price (usd per share)	$ 12.68	$ 15.10	$ 22.12	$ 28.15
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term	8 years 18 days	7 years 11 months 16 days	4 years 10 months 21 days	4 years 4 months 2 days
Outstanding, aggregate intrinsic value	$ 0	$ 614,591	$ 22,479	$ 48,939
Vested and expected to vest (shares)	544,232
Vested and expected to vest, weighted average exercise price (usd per share)	$ 12.86
Vested and expected to vest, weighted average remaining contractual term	7 years 11 months 9 days
Vested and expected to vest, aggregate intrinsic value	$ 0
Exercisable (shares)	219,956
Exercisable, weighted average exercise price (usd per share)	$ 15.57
Exercisable, weighted average remaining contractual term	6 years 5 months 23 days
Exercisable, aggregate intrinsic value, per share	$ 0
Total intrinsic value of stock options exercised	34,000	42,000	17,000
Cash received from stock options exercised	145,000	190,000	72,000
Total value of restricted shares vested	$ 697,000	$ 380,000	$ 525,000

Share-Based Compensation - Sig

Share-Based Compensation - Significant Ranges of Outstanding and Exercisable Options (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	$ 9.1
Range of Exercise prices, upper range limit (usd per share)	$ 52.60
Options outstanding as of December 31, 2014 (shares) | shares	599,973
Weighted average remaining contractual life (years)	8 years 18 days
Weighted average exercise price (usd per share)	$ 12.68
Options exercisable as of December 31, 2014 (shares) | shares	219,956
Weighted average exercise price of exercisable options (usd per share)	$ 15.57
$9.10 - $9.20
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	9.10
Range of Exercise prices, upper range limit (usd per share)	$ 9.20
Options outstanding as of December 31, 2014 (shares) | shares	21,998
Weighted average remaining contractual life (years)	6 years 10 months 10 days
Weighted average exercise price (usd per share)	$ 9.12
Options exercisable as of December 31, 2014 (shares) | shares	18,609
Weighted average exercise price of exercisable options (usd per share)	$ 9.10
$9.63 - $9.63
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	9.63
Range of Exercise prices, upper range limit (usd per share)	$ 9.63
Options outstanding as of December 31, 2014 (shares) | shares	155,636
Weighted average remaining contractual life (years)	8 years 3 months 4 days
Weighted average exercise price (usd per share)	$ 9.63
Options exercisable as of December 31, 2014 (shares) | shares	64,315
Weighted average exercise price of exercisable options (usd per share)	$ 9.63
$9.72 - $10.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	9.72
Range of Exercise prices, upper range limit (usd per share)	$ 10.55
Options outstanding as of December 31, 2014 (shares) | shares	14,007
Weighted average remaining contractual life (years)	5 years 7 months 2 days
Weighted average exercise price (usd per share)	$ 10.06
Options exercisable as of December 31, 2014 (shares) | shares	12,675
Weighted average exercise price of exercisable options (usd per share)	$ 10.09
$10.95 - $10.95
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	10.95
Range of Exercise prices, upper range limit (usd per share)	$ 10.95
Options outstanding as of December 31, 2014 (shares) | shares	225,650
Weighted average remaining contractual life (years)	9 years 5 months 1 day
Weighted average exercise price (usd per share)	$ 10.95
Options exercisable as of December 31, 2014 (shares) | shares	0
Weighted average exercise price of exercisable options (usd per share)	$ 0
$12.12 - $13.40
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	12.12
Range of Exercise prices, upper range limit (usd per share)	$ 13.40
Options outstanding as of December 31, 2014 (shares) | shares	63,416
Weighted average remaining contractual life (years)	8 years 4 months 17 days
Weighted average exercise price (usd per share)	$ 12.78
Options exercisable as of December 31, 2014 (shares) | shares	30,086
Weighted average exercise price of exercisable options (usd per share)	$ 12.94
$13.46 - $14.51
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	13.46
Range of Exercise prices, upper range limit (usd per share)	$ 14.51
Options outstanding as of December 31, 2014 (shares) | shares	81,030
Weighted average remaining contractual life (years)	6 years 9 months 22 days
Weighted average exercise price (usd per share)	$ 14.27
Options exercisable as of December 31, 2014 (shares) | shares	57,701
Weighted average exercise price of exercisable options (usd per share)	$ 14.23
$16.80 - $27.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	16.80
Range of Exercise prices, upper range limit (usd per share)	$ 27.60
Options outstanding as of December 31, 2014 (shares) | shares	19,461
Weighted average remaining contractual life (years)	4 years 9 months
Weighted average exercise price (usd per share)	$ 23.79
Options exercisable as of December 31, 2014 (shares) | shares	17,795
Weighted average exercise price of exercisable options (usd per share)	$ 24.18
$29.80 - $29.80
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	29.80
Range of Exercise prices, upper range limit (usd per share)	$ 29.80
Options outstanding as of December 31, 2014 (shares) | shares	4,150
Weighted average remaining contractual life (years)	11 months 3 days
Weighted average exercise price (usd per share)	$ 29.80
Options exercisable as of December 31, 2014 (shares) | shares	4,150
Weighted average exercise price of exercisable options (usd per share)	$ 29.80
$32.00 - $32.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	32
Range of Exercise prices, upper range limit (usd per share)	$ 32
Options outstanding as of December 31, 2014 (shares) | shares	1,200
Weighted average remaining contractual life (years)	1 year 3 months 29 days
Weighted average exercise price (usd per share)	$ 32
Options exercisable as of December 31, 2014 (shares) | shares	1,200
Weighted average exercise price of exercisable options (usd per share)	$ 32
$52.60 - $52.60
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise prices, lower range limit (usd per share)	52.60
Range of Exercise prices, upper range limit (usd per share)	$ 52.60
Options outstanding as of December 31, 2014 (shares) | shares	13,425
Weighted average remaining contractual life (years)	6 months 15 days
Weighted average exercise price (usd per share)	$ 52.60
Options exercisable as of December 31, 2014 (shares) | shares	13,425
Weighted average exercise price of exercisable options (usd per share)	$ 52.60

Share-Based Compensation - Res

Share-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units, beginning balance (shares)	143,179	103,034	81,193
Granted (shares)	90,869	95,587	100,355
Released (shares)	(65,766)	(41,136)	(39,238)
Canceled (shares)	(22,326)	(14,306)	(39,276)
Restricted stock units, ending balance (shares)	145,956	143,179	103,034
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted stock units, beginning balance (usd per share)	$ 11.38	$ 12.80	$ 9.94
Granted (usd per share)	10.95	10.58	13.91
Released (usd per share)	11.23	12.58	10.08
Canceled (usd per share)	11.94	12.79	12.45
Restricted stock units, ending balance (usd per share)	$ 11.14	$ 11.38	$ 12.80
Aggregate intrinsic value	$ 1,190	$ 1,750	$ 1,023,128	$ 870,399

Share-Based Compensation - Nar

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, grants during period (shares)	245,539	255,914	198,647
Total compensation cost not yet recognized	$ 2
Total compensation cost not yet recognized, period for recognition	1 year 9 months 16 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, expiration period	10 years
Options, grants during period (shares)	245,539	255,914	198,647
Options, weighted-average fair value, grants during the period (usd per share)	$ 4.89	$ 4.48	$ 6.95
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period	1 year
Restricted stock, grants during period (shares)	90,869	95,587	100,355
Restricted stock, weighted-average fair value, grants during the period (usd per share)	$ 10.95	$ 10.58	$ 13.91
2015 Long Term Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, expiration period	10 years
Minimum | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period	1 year
Minimum | 2015 Long Term Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period	1 year
Maximum | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period	3 years
Maximum | 2015 Long Term Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, vesting period	3 years

Geographic Information - Exter

Geographic Information - External Revenue and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 20,902	$ 18,947	$ 21,584	$ 18,882	$ 18,562	$ 22,933	$ 24,519	$ 22,185	$ 80,315	$ 88,199	$ 86,538
Long-Lived Assets	3,130				4,050				3,130	4,050
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	2,336				2,808				2,336	2,808
Americas (Excluding the U.S.)
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	0				0				0	0
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	782				1,223				782	1,223
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	12				19				12	19
Israel
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 1,200				$ 800				1,200	800
Sales Revenue, Net
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 80,315	$ 88,199	$ 86,538
Concentration risk percentage									100.00%	100.00%	100.00%
Sales Revenue, Net | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 39,727	$ 42,933	$ 51,036
Concentration risk percentage									49.00%	49.00%	59.00%
Sales Revenue, Net | Americas (Excluding the U.S.)
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 8,250	$ 6,828	$ 1,507
Concentration risk percentage									10.00%	8.00%	2.00%
Sales Revenue, Net | Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 14,531	$ 19,463	$ 20,478
Concentration risk percentage									18.00%	22.00%	24.00%
Sales Revenue, Net | Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 17,807	$ 18,975	$ 13,517
Concentration risk percentage									23.00%	21.00%	15.00%

Geographic Information - Narra

Geographic Information - Narrative (Details) - segment	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Number of business segments			2	1
Sales Revenue, Net
Segment Reporting Information [Line Items]
Concentration risk percentage				100.00%	100.00%	100.00%
Customer A | Sales Revenue, Net
Segment Reporting Information [Line Items]
Concentration risk percentage				17.00%	19.00%	11.00%
Customer A | Accounts Receivable
Segment Reporting Information [Line Items]
Concentration risk percentage	11.00%	15.00%
Customer B | Sales Revenue, Net
Segment Reporting Information [Line Items]
Concentration risk percentage				12.00%	12.00%	12.00%
Customer B | Accounts Receivable
Segment Reporting Information [Line Items]
Concentration risk percentage	11.00%	5.00%
Australia | Sales Revenue, Net
Segment Reporting Information [Line Items]
Concentration risk percentage				20.00%	18.00%	13.00%

Other Income (Expense), Net (De

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Income and Expenses [Abstract]
Interest income	$ 39	$ 1	$ 5
Gain (loss) on foreign currency transactions	(310)	(133)	441
Other (expense) income, net	5	84	225
Total	$ (266)	$ (48)	$ 671

Quarterly Financial Data (Una73

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 20,902	$ 18,947	$ 21,584	$ 18,882	$ 18,562	$ 22,933	$ 24,519	$ 22,185	$ 80,315	$ 88,199	$ 86,538
Cost of sales	10,636	9,981	11,513	9,079	8,599	10,819	12,560	10,641	41,209	42,619	43,937
Gross profit	10,266	8,966	10,071	9,803	9,963	12,114	11,959	11,544	39,106	45,580	42,601
Operating expenses:
Product development and engineering	5,075	4,937	5,125	5,344	5,112	4,901	5,310	5,125	20,481	20,448	20,833
Selling, general and administrative	7,719	6,931	7,007	8,017	6,570	7,281	7,379	7,736	29,674	28,966	35,080
Total operating expenses	12,794	11,868	12,132	13,361	11,682	12,182	12,689	12,861	50,155	49,414	55,913
Operating loss	(2,528)	(2,902)	(2,061)	(3,558)	(1,719)	(68)	(730)	(1,317)	(11,049)	(3,834)	(13,312)
Interest expense					(8)	(11)	(22)	(14)
Other income (loss), net	117	(180)	74	(277)	(21)	188	(296)	81	(266)	(48)	671
Loss from continuing operations before provision for income taxes	(2,411)	(3,082)	(1,987)	(3,835)	(1,748)	109	(1,048)	(1,250)	(11,315)	(3,937)	(12,665)
Provision for income taxes	194	31	36	61	2,783	(39)	77	50	322	2,871	1,873
Loss from continuing operations					(4,531)	148	(1,125)	(1,300)	(11,637)	(6,808)	(14,538)
Gain (loss) from discontinued operations					(2,185)	738	844	232	0	(371)	2,383
Net loss	$ (2,605)	$ (3,113)	$ (2,023)	$ (3,896)	$ (6,716)	$ 886	$ (281)	$ (1,068)	$ (11,637)	$ (7,179)	$ (12,155)
Net loss per share — basic and diluted (usd per share)	$ (0.38)	$ (0.45)	$ (0.29)	$ (0.56)					$ (1.69)	$ (1.02)	$ (1.66)
Basic and diluted weighted average shares (shares)	6,808	6,868	7,092	6,981					6,886	7,019	7,344
Net income loss per share — basic
From continuing operations (usd per share)					$ (0.65)	$ 0.02	$ (0.16)	$ (0.18)
From discontinued operations (usd per share)					(0.31)	0.11	0.12	0.03
Net loss per share — basic (usd per share)					(0.96)	0.13	(0.04)	(0.15)
Net Income (loss) per share — diluted
From continuing operations (usd per share)					(0.65)	0.02	(0.16)	(0.18)
From discontinued operations (usd per share)					(0.31)	0.11	0.12	0.03
Net loss per share — diluted (usd per share)					$ (0.96)	$ 0.13	$ (0.04)	$ (0.15)
Basic (shares)					6,980	6,978	6,988	7,131
Diluted (shares)					6,980	7,014	6,988	7,131
Revenue adjustment for write off of excess accrual for future product discounts	$ 500	$ 300	$ 400	$ 300
Increase in provision for income taxes related to increase in valuation allowance on deferred tax assets					$ 2,600

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	Jan. 09, 2017USD ($)building	Feb. 01, 2017USD ($)	Dec. 31, 2016USD ($)
Subsequent Event [Line Items]
Total lease payments over the lease term			$ 2,242
George DiRado | Subsequent Event
Subsequent Event [Line Items]
Total lease payments over the lease term	$ 100	$ 600
Number of facilities | building	2